cibcbalancedindexfund annualfinancialstatements ·...

The accompanying notes are an integral part of these financial statements.

CIBC Balanced Index Fund

Annual Financial Statementsfor the financial year ended December 31, 2015

† Securities LendingThe tables that follow indicate the Fund had assets involved in securities lending transactionsoutstanding as at December 31, 2015 and 2014.

Aggregate Valueof Securities

on Loan($000s)

AggregateValue

of Collateralfor Loan

($000s)x

x

December 31, 2015 22,201 23,164x

December 31, 2014 15,770 16,374x

Collateral Type* ($000s)i ii iii iv

xx

December 31, 2015 6,747 16,379 – 38x

December 31, 2014 7,366 9,008 – –x

x

* See note 2j for Collateral Type definitions.

Organization of the Fund (note 1)The Fund was established on November 20, 1998 (Date Established).

Inception Datexx

Class A December 4, 1998x

Premium Class November 23, 2011x

Institutional Class November 27, 2014xx

Statements of Financial Position(in 000s, except per unit amounts)

As at December 31, 2015 and 2014 (note 1)

December 31, 2015 December 31, 2014x

x

Assetsxxx

Current assetsx

Investments (non-derivative financial assets) † (notes2 and 3) $ 186,742 $ 112,670

x

Cash including foreign currency holdings, at fair value 6 18x

Margin 1,141 934x

Interest receivable 328 203x

Dividends receivable 163 82x

Receivable for portfolio securities sold 2 167x

Receivable for units issued 904 753x

Derivative assets 921 627xxx

Total Assets 190,207 115,454xxx

Liabilitiesxxx

Current liabilitiesx

Payable for portfolio securities purchased 768 681x

Payable for units redeemed 564 98x

Derivative liabilities – 1xxx

Total Liabilities 1,332 780xxx

Net Assets Attributable to Holders ofRedeemable Units (note 5) $ 188,875 $ 114,674

xxx

Net Assets Attributable to Holders ofRedeemable Units per Class

x

Class A $ 84,327 $ 56,647x

Premium Class $ 104,490 $ 57,970x

Institutional Class $ 58 $ 57xxx

Net Assets Attributable to Holders ofRedeemable Units per Unit (note 5)

x

Class A $ 14.69 $ 15.01x

Premium Class $ 11.11 $ 11.35x

Institutional Class $ 9.43 $ 9.63x

1



Statements of Comprehensive Income(in 000s, except per unit amounts)

For the periods ended December 31, 2015 and 2014 (note 1)


x

Net Gain (loss) on Financial Instrumentsx

Interest for distribution purposes $ 2,128 $ 1,382x

Dividend revenue 1,770 841x

Derivative income (loss) 3,712 2,148x

Other changes in fair value of investments andderivatives

x

Net realized gain (loss) on sale of investments andderivatives (130) 455

x

Net realized gain (loss) on foreign currency (notes 2fand g) (191) 89

x

Net change in unrealized appreciation (depreciation)of investments and derivatives (5,409) 2,849

xxx

Net Gain (loss) on Financial Instruments ±±± 1,880 7,764xx

x

Other Incomex

Foreign exchange gain (loss) on cash 171 192x

Securities lending revenue 29 17xxx

200 209xx

x

Expenses (note 6)x

Management fees ± 1,554 892x

Audit fees 11 12x

Custodial fees 82 72x

Independent review committee fees – –x

Legal fees 2 –x

Regulatory fees 28 23x

Transaction costs ±± 41 25x

Unitholder reporting costs 154 108x

Withholding taxes (note 7) 46 11x

Other expenses 4 2xxx

1,922 1,145xx

x

Expenses waived/absorbed by the Manager (597) (365)xx

x

1,325 780xx

x

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units (excludingdistributions) 755 7,193

xx

x

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units per Class(excluding distributions)

x

Class A $ 178 $ 3,721x

Premium Class $ 576 $ 3,472x

Institutional Class $ 1 $ –xxx

Average Number of Units Outstanding for theperiod per Class

x

Class A 4,874 3,208x

Premium Class 7,463 3,821x

Institutional Class 6 6xxx

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units per Unit(excluding distributions)

x

Class A $ 0.04 $ 1.16x

Premium Class $ 0.08 $ 0.91x

Institutional Class $ 0.22 $ (0.02)x

x

±±± Net Gain (Loss) on Financial Instruments(in 000s)

Net gains (losses)

Category December 31, 2015 December 31, 2014x..

Financial assets at FVTPL..

Held for Trading $ 3,678 $ 2,183..

Designated at Inception (1,798) 5,581......

Total financial assets at FVTPL $ 1,880 $ 7,764..

± Maximum Chargeable Annual Management Fee Rates (note 6)xx

Class A 1.00%x

Premium Class 0.75%x

Institutional Class 0.60%xx

±± Brokerage Commissions and Fees (notes 8 and 9)

2015 2014x

x

Brokerage commissions and other fees ($000s)x

Total Paid 36 20x

Paid to CIBC World Markets Inc. 12 9x

Paid to CIBC World Markets Corp. – –x

Soft dollars ($000s)x

Total Paid – –x

Paid to CIBC World Markets Inc. and CIBC World Markets Corp. – –xx

Administrative and Other Fund Operating Expenses (note 9)

2015 2014x

x

($000s) 186 109xx

Service Provider (note 9)The amounts paid by the Fund (including all applicable taxes) to CIBC Mellon Trust Company forcustodial fees, and to CIBC Mellon Global Securities Services Company (CIBC GSS) for securitieslending, fund accounting and reporting, and portfolio valuation (all net of absorptions) for the periodsended December 31, 2015 and 2014 were as follows:

2015 2014x

x

($000s) 85 56xx

2


CIBC Balanced Index Fundx

Statements of Changes in Net Assets Attributable to Holders of Redeemable Units(in 000s)For the periods ended December 31, 2015 and 2014 (note 1)

Class A Units Premium Class Units Institutional Class Units

December 31,2015

December 31,2014

December 31,2015

December 31,2014

December31, 2015

December 31,2014

xx.

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units (excludingdistributions) $ 178 $ 3,721 $ 576 $ 3,472 $ 1 $ –

xxx.

Distributions Paid or Payable to Holders ofRedeemable Units ‡

x.

From net investment income (2,892) (1,467) (4,310) (1,878) (2) (2)x.xx

(2,892) (1,467) (4,310) (1,878) (2) (2)xxx.

Redeemable Unit Transactionsx.

Amount received from the issuance of units 44,056 25,288 58,331 36,312 1 57x.

Amount received from reinvestment of distributions 2,860 1,446 4,257 1,861 2 2x.

Amount paid on redemptions of units (16,522) (9,515) (12,334) (7,076) (1) –x.xx

30,394 17,219 50,254 31,097 2 59xxx.

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units 27,680 19,473 46,520 32,691 1 57

x.

Net Assets Attributable to Holders of Redeemable Unitsat Beginning of Period 56,647 37,174 57,970 25,279 57 –

x.xx

Net Assets Attributable to Holders of Redeemable Unitsat End of Period $ 84,327 $ 56,647 $ 104,490 $ 57,970 $ 58 $ 57

xxx.

Redeemable Units Issued and Outstanding (note 5)x.

As at December 31, 2015 and 2014x.

Balance - beginning of period 3,774 2,620 5,108 2,359 6 –x.

Redeemable units issued 2,844 1,692 4,970 3,210 – 6x.

Redeemable units issued on reinvestments 195 97 384 164 – –x.xx

6,813 4,409 10,462 5,733 6 6x.

Redeemable units redeemed (1,073) (635) (1,058) (625) – –x.xx

Balance - end of period 5,740 3,774 9,404 5,108 6 6xx

x

‡ Net Capital and Non-Capital Losses (note 7)As at December 2015, the Fund had non-capital and capital losses (in $000s) for income tax purposes available to be carried forward as follows:

Total Net Capital Losses

Total Non-Capital Lossesthat Expire in:

2026 to 2035x..

1,157 –.

.

3


CIBC Balanced Index Fundx

x

Statements of Cash Flows(in 000s)For the periods ended December 31, 2015 and 2014 (note 1)

December 31, 2015 December 31, 2014xx.

Cash Flows from Operating Activitiesx.

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (excluding distributions) $ 755 $ 7,193x.

Adjustments for:x.

Foreign exchange loss (gain) on cash (171) (192)x.

Net realized (gain) loss on sale of investments and derivatives 130 (455)x.

Net change in unrealized (appreciation) depreciation of investments and derivatives 5,409 (2,849)x.

Purchase of investments (356,263) (231,534)x.

Proceeds from the sale of investments 276,609 179,177x.

Margin (207) 3,808x.

Interest receivable (125) (79)x.

Dividends receivable (81) (41)x.xx

(73,944) (44,972)xxx.

Cash Flows from Financing Activitiesx.

Amount received from the issuance of units 102,237 61,412x.

Amount paid on redemptions of units (28,391) (16,593)x.

Distributions paid to unitholders (85) (38)x.xx

73,761 44,781xxx.

Increase (Decrease) in Cash during the Period (183) (191)xxx.

Foreign exchange loss (gain) on cash 171 192xxx.

Cash (Bank Overdraft) at Beginning of Period 18 17xxx.

Cash (Bank Overdraft) at End of Period $ 6 $ 18x

x.

Interest received $ 2,003 $ 1,303x.

Dividends received, net of withholding taxes $ 1,643 $ 789

4



x

Schedule of Investment Portfolio As at December 31, 2015

SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets

CANADIAN EQUITIESx

Consumer Discretionary..

Aimia Inc. 5,870 86 55..

Amaya Inc. 4,020 122 70..

AutoCanada Inc. 774 41 19..

BRP Inc. 1,281 34 25..

Canadian Tire Corp. Ltd., Class 'A' 2,660 270 314..

Cineplex Inc. 2,346 92 112..

Cogeco Cable Inc. 848 47 52..

Corus Entertainment Inc., Class 'B' 3,122 58 34..

DHX Media Ltd. 4,365 41 37..

Dollarama Inc. 4,270 218 341..

Dorel Industries Inc., Class 'B' 972 32 30..

EnerCare Inc. 3,399 50 54..

Gildan Activewear Inc. 8,590 255 338..

Great Canadian Gaming Corp. 1,824 37 28..

Hudson's Bay Co. 4,131 90 75..

Intertain Group Ltd. (The) 2,452 42 24..

Linamar Corp. 1,695 96 127..

Magna International Inc., Class 'A' 14,287 722 802..

Martinrea International Inc. 3,210 35 34..

Quebecor Inc., Class 'B' 3,106 82 105..

Restaurant Brands International Inc. 8,370 401 433..

RONA Inc. 3,459 46 43..

Shaw Communications Inc., Class 'B' 14,649 364 349..

Thomson Reuters Corp. 11,997 524 629..

Uni-Select Inc. 741 42 51..

....

3,827 4,181 2.2%..x

Consumer Staples..

Alimentation Couche-Tard Inc., Class 'B' 15,595 568 950..

Cott Corp. 4,075 45 62..

Empire Co. Ltd., Class 'A' 6,002 153 154..

George Weston Ltd. 1,759 158 188..

Jean Coutu Group (PJC) Inc. (The), Class 'A' 3,107 59 56..

Loblaw Cos. Ltd. 8,129 454 531..

Maple Leaf Foods Inc. 3,339 63 79..

Metro Inc., Class 'A' 8,947 232 347..

North West Co. Inc. (The) 1,803 42 52..

Saputo Inc. 9,482 254 314..

....

2,028 2,733 1.4%..x

Energy..

Advantage Oil & Gas Ltd. 6,349 46 45..

AltaGas Ltd. 5,452 200 168..

ARC Resources Ltd. 12,833 299 214..

Athabasca Oil Corp. 13,660 74 21..

Baytex Energy Corp. 7,820 185 35..

Birchcliff Energy Ltd. 3,908 31 16..

Bonavista Energy Corp. 7,320 83 13..

Bonterra Energy Corp. 961 42 17..

Cameco Corp. 14,720 273 251..

Canadian Energy Services & Technology Corp. 7,037 44 27..

Canadian Natural Resources Ltd. 40,704 1,306 1,230..

Canadian Oil Sands Ltd. 18,023 301 149..

Cenovus Energy Inc. 30,988 701 542..

Crescent Point Energy Corp. 18,779 542 303..

Crew Energy Inc. 5,246 38 21..

Enbridge Inc. 32,120 1,460 1,478..

Enbridge Income Fund Holdings Inc. 2,854 86 80..

Encana Corp. 31,451 512 221..

Enerflex Ltd. 2,942 39 39..

Enerplus Corp. 7,679 144 36..

Ensign Energy Services Inc. 4,611 55 34..

Freehold Royalties Ltd. 2,825 47 31..

Gibson Energy Inc. 4,690 109 65..

Gran Tierra Energy Inc. 9,188 51 28..

Husky Energy Inc. 10,982 269 157..

Imperial Oil Ltd. 9,457 410 426..

Inter Pipeline Ltd. 12,506 345 278..

Kelt Exploration Ltd. 5,267 45 22..

Keyera Corp. 6,360 216 256..

MEG Energy Corp. 5,772 154 46..

Mullen Group Ltd. 3,409 73 48..

Nuvista Energy Ltd. 5,701 39 23..

Paramount Resources Ltd., Class 'A' 2,173 71 13..

Parex Resources Inc. 5,259 54 53..

Parkland Fuel Corp. 3,386 72 79..

Pason Systems Inc. 2,643 53 51..

Pembina Pipeline Corp. 13,800 470 416..

Pengrowth Energy Corp. 20,196 115 21..

Penn West Petroleum Ltd. 18,676 173 22..

Peyto Exploration & Development Corp. 5,911 174 147

5



Schedule of Investment Portfolio As at December 31, 2015 (cont'd)

SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

PrairieSky Royalty Ltd. 5,819 172 128..

Precision Drilling Corp. 10,893 104 60..

Raging River Exploration Inc. 6,577 51 55..

Secure Energy Services Inc. 4,497 59 38..

Seven Generations Energy Ltd., Class 'A' 5,896 91 79..

ShawCor Ltd. 2,399 83 67..

Suncor Energy Inc. 53,762 1,799 1,920..

Surge Energy Inc. 8,219 40 17..

TORC Oil & Gas Ltd. 4,219 39 22..

Tourmaline Oil Corp. 6,913 253 155..

TransCanada Corp. 26,367 1,226 1,192..

Trinidad Drilling Ltd. 8,259 40 18..

Veresen Inc. 11,001 157 97..

Vermilion Energy Inc. 4,121 204 155..

Whitecap Resources Inc. 11,117 137 101..

....

13,856 11,226 6.0%..x

Financials..

Alaris Royalty Corp. 1,338 41 31..

Allied Properties REIT 2,908 94 92..

Artis REIT 5,149 66 66..

Bank of Montreal 23,898 1,652 1,866..

Bank of Nova Scotia 44,739 2,567 2,504..

Boardwalk REIT 1,424 73 68..

Brookfield Asset Management Inc., Class 'A' 32,108 1,077 1,402..

Canaccord Genuity Group Inc. 3,526 32 18..

Canadian Apartment Properties REIT 4,769 109 128..

Canadian Imperial Bank of Commerce 14,775 1,275 1,347..

Canadian Western Bank 2,994 81 70..

Chartwell Retirement 6,491 65 82..

CI Financial Corp. 8,844 282 271..

Colliers International Group Inc. 1,226 49 76..

Cominar REIT 6,013 100 88..

CREIT 2,712 109 114..

Crombie REIT 2,890 36 37..

Dream Global REIT 3,979 36 34..

Dream Office REIT 4,005 97 70..

Element Financial Corp. 14,348 231 240..

Fairfax Financial Holdings Ltd. 819 440 538..

First Capital Realty Inc. 4,190 76 77..

FirstService Corp. 1,147 31 64..

Genworth MI Canada Inc. 1,433 44 38..

Granite Real Estate Investment Trust, Stapled Units 1,748 68 66..

Great-West Lifeco Inc. 10,711 333 370..

H&R REIT 10,365 218 208..

Home Capital Group Inc. 2,399 82 65..

Horizons S&P/TSX 60 Index ETF 39,344 997 989..

IGM Financial Inc. 3,291 135 116..

Industrial Alliance Insurance and Financial Services Inc. 3,786 150 167..

Intact Financial Corp. 4,892 358 434..

Laurentian Bank of Canada 1,076 48 52..

Manulife Financial Corp. 73,316 1,564 1,521..

National Bank of Canada 12,529 502 505..

Northview Apartment REIT 1,651 38 29..

Onex Corp. 2,993 172 254..

Power Corp. of Canada 13,556 392 392..

Power Financial Corp. 9,019 286 287..

Pure Industrial Real Estate Trust 6,998 33 31..

RioCan REIT 11,915 285 282..

Royal Bank of Canada 55,231 3,720 4,095..

Smart REIT 4,251 111 128..

Sun Life Financial Inc. 22,733 850 981..

TMX Group Ltd. 869 40 31..

Toronto-Dominion Bank (The) 68,960 3,247 3,740..

Tricon Capital Group Inc. 3,916 42 35..

....

22,334 24,099 12.8%..x

Health Care..

Concordia Healthcare Corp. 1,400 106 79..

Extendicare Inc. 3,266 25 31..

ProMetic Life Sciences Inc. 17,719 47 60..

Valeant Pharmaceuticals International Inc. 11,928 2,033 1,677..

....

2,211 1,847 1.0%..x

Industrials..

Aecon Group Inc. 2,101 29 32..

Air Canada 10,554 90 108..

ATS Automation Tooling Systems Inc. 2,787 39 32..

Badger Daylighting Ltd. 1,379 39 34..

Bombardier Inc., Class 'B' 71,870 261 96..

Boyd Group Income Fund 624 37 41..

CAE Inc. 10,014 130 154..

Canadian National Railway Co. 29,481 1,829 2,280..

Canadian Pacific Railway Ltd. 5,173 847 914..

Finning International Inc. 6,295 138 118..

New Flyer Industries Inc. 1,383 37 39

6




SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Progressive Waste Solutions Ltd. 4,065 117 133..

Ritchie Bros. Auctioneers Inc. 3,985 113 133..

Russel Metals Inc. 2,294 54 37..

SNC-Lavalin Group Inc. 5,570 222 229..

Stantec Inc. 3,509 102 120..

Superior Plus Corp. 5,227 66 56..

Toromont Industries Ltd. 2,722 67 86..

Transcontinental Inc., Class 'A' 2,356 35 41..

TransForce Inc. 3,168 71 75..

WestJet Airlines Ltd. 4,584 105 93..

Westshore Terminals Investment Corp. 2,198 62 26..

WSP Global Inc. 2,362 87 100..

....

4,577 4,977 2.6%..x

Information Technology..

Avigilon Corp. 1,309 30 18..

BlackBerry Ltd. 17,203 289 221..

Celestica Inc. 4,613 77 71..

CGI Group Inc., Class 'A' 10,250 406 568..

Computer Modelling Group Ltd. 2,775 34 25..

Constellation Software Inc. 693 245 400..

Descartes Systems Group Inc. (The) 2,817 52 78..

DH Corp. 3,947 133 125..

Enghouse Systems Ltd. 682 36 51..

Kinaxis Inc. 735 33 34..

MacDonald, Dettwiler and Associates Ltd. 1,346 100 112..

Mitel Networks Corp. 3,445 38 37..

Open Text Corp. 4,514 219 299..

Sierra Wireless Inc. 1,197 50 26..

....

1,742 2,065 1.1%..x

Materials..

Agnico Eagle Mines Ltd. 8,095 284 294..

Agrium Inc. 5,138 522 635..

Alacer Gold Corp. 10,830 39 27..

Alamos Gold Inc., Class 'A' 9,547 76 43..

B2Gold Corp. 34,473 75 48..

Barrick Gold Corp. 43,321 788 444..

Canfor Corp. 2,787 60 56..

CCL Industries Inc., Class 'B' 1,007 119 226..

Centerra Gold Inc. 5,897 42 39..

Chemtrade Logistics Income Fund 2,568 52 46..

Detour Gold Corp. 6,354 75 92..

Dominion Diamond Corp. 3,171 53 45..

Eldorado Gold Corp. 26,651 179 109..

First Majestic Silver Corp. 5,784 42 26..

First Quantum Minerals Ltd. 25,637 373 133..

Franco-Nevada Corp. 5,841 303 370..

Goldcorp Inc. 30,877 729 494..

Hudbay Minerals Inc. 8,748 80 46..

IAMGOLD Corp. 14,557 60 29..

Interfor Corp. 2,318 39 33..

Intertape Polymer Group Inc. 1,941 32 36..

Kinross Gold Corp. 42,639 264 107..

Labrador Iron Ore Royalty Corp. 2,380 45 23..

Lundin Mining Corp. 23,284 124 88..

Methanex Corp. 3,334 169 152..

Nevsun Resource Ltd. 7,430 31 28..

New Gold Inc. 18,936 88 61..

Norbord Inc. 1,492 42 40..

NovaGold Resources Inc. 8,631 40 50..

OceanaGold Corp. 22,424 58 59..

Osisko Gold Royalties Ltd. 3,510 55 48..

Pan American Silver Corp. 5,640 73 51..

Potash Corp. of Saskatchewan Inc. 31,057 1,050 736..

Pretium Resources Inc. 4,033 31 28..

Primero Mining Corp. 6,043 35 19..

SEMAFO Inc. 10,944 41 38..

Silver Standard Resources Inc. 3,006 30 22..

Silver Wheaton Corp. 15,019 302 258..

Stella-Jones Inc. 1,567 71 82..

Tahoe Resources Inc. 8,448 128 101..

Teck Resources Ltd., Class 'B' 17,288 290 92..

Torex Gold Resources Inc. 29,212 39 37..

Turquoise Hill Resources Ltd. 36,672 161 129..

West Fraser Timber Co. Ltd. 2,504 125 132..

Western Forest Products Inc. 14,693 34 33..

Yamana Gold Inc. 35,206 226 91..

....

7,574 5,776 3.1%..

7




SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assetsx

Telecommunication Services..

BCE Inc. 32,147 1,530 1,719..

Manitoba Telecom Services Inc. 2,947 87 88..

Rogers Communications Inc., Class 'B' 13,316 544 635..

TELUS Corp. 22,318 796 854..

....

2,957 3,296 1.7%..x

Utilities..

Algonquin Power & Utilities Corp. 7,516 67 82..

ATCO Ltd., Class 'I' 2,794 105 100..

Brookfield Renewable Energy Partners L.P. 3,837 133 139..

Canadian Utilities Ltd., Class 'A' 4,329 143 138..

Capital Power Corp. 3,357 77 60..

Emera Inc. 5,405 192 234..

Fortis Inc. 10,421 356 390..

Innergex Renewable Energy Inc. 3,408 37 38..

Just Energy Group Inc. 3,606 33 36..

Northland Power Inc. 4,092 66 76..

TransAlta Corp. 10,564 130 52..

....

1,339 1,345 0.7%..

..

TOTAL CANADIAN EQUITIES 62,445 61,545 32.6%..

..

INTERNATIONAL EQUITIESx

United States..

Brookfield Property Partners L.P. 8,005 200 258..

iShares MSCI EAFE ETF 161,040 12,215 13,091..

Performance Sports Group Ltd. 1,694 38 23..

....

12,453 13,372 7.1%..

..

TOTAL INTERNATIONAL EQUITIES 12,453 13,372 7.1%..

..

TOTAL EQUITIES 74,898 74,917 39.7%..

SecurityCoupon

Rate (%)Maturity

Date Additional Details Par Value

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets

CANADIAN BONDSx

Government of Canada & Guaranteed..

Canada Housing Trust No. 1 2.05% 2017/06/15 975,000 992 995..

Canada Housing Trust No. 1 1.70% 2017/12/15 1,500,000 1,527 1,529..



Canada Housing Trust No. 1 2.35% 2018/12/15 Series '56' 1,225,000 1,265 1,277..

Canada Housing Trust No. 1 4.10% 2018/12/15 Series '23' 275,000 307 301..
















Canada Post Corp. 4.08% 2025/07/16 Series '2' 100,000 118 118..

CPPIB Capital Inc. 1.40% 2020/06/04 Series 'A', Restricted, Callable 25,000 25 25..

Government of Canada 1.50% 2017/02/01 700,000 712 708..




Government of Canada 1.25% 2018/02/01 1,050,000 1,066 1,067..
















Government of Canada 4.00% 2041/06/01 895,000 1,149 1,216..

Government of Canada 3.50% 2045/12/01 450,000 563 584

8




SecurityCoupon

Rate (%)Maturity


AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..



Maritime Link Financing Trust 3.50% 2052/12/01 Series 'A', Sinkable, Callable 25,000 25 28..

..

..

23,456 23,895 12.7%..x

Provincial Government & Guaranteed..

55 School Board Trust 5.90% 2033/06/02 Series 'A' 75,000 82 100..

Financement-Québec 3.50% 2017/12/01 100,000 106 105..



Hydro-Québec 11.00% 2020/08/15 Series 'HL' 125,000 186 178..

Hydro-Québec 6.50% 2035/02/15 Series '19' 150,000 225 221..

Hydro-Québec 6.00% 2040/02/15 25,000 32 36..

Hydro-Québec 5.00% 2045/02/15 Series 'JM' 25,000 29 33..

Hydro-Québec 5.00% 2050/02/15 Series 'JN' 25,000 26 34..

Labrador-Island Link Funding Trust 3.86% 2045/12/01 Series 'B', Callable 25,000 26 30..

Labrador-Island Link Funding Trust 3.85% 2053/12/01 Series 'C', Callable 25,000 25 31..

Ontario Electricity Financial Corp. 8.25% 2026/06/22 75,000 97 114..

Ontario School Boards Financing Corp. 6.55% 2026/10/19 31,983 32 40..



Province of Alberta 1.70% 2017/12/15 50,000 49 51..











Province of British Columbia 4.65% 2018/12/18 150,000 168 166..

Province of British Columbia 3.70% 2020/12/18 Series 'BCCD-24' 150,000 165 167..



Province of British Columbia 3.30% 2023/12/18 Series 'BCCD' 50,000 50 55..









Province of British Columbia 2.80% 2048/06/18 Series 'BCCD-35' 25,000 23 23..

Province of Manitoba 4.15% 2020/06/03 25,000 27 28..












Province of New Brunswick 4.45% 2018/03/26 50,000 56 54..





Province of New Brunswick 5.50% 2034/01/27 Series 'GJ' 25,000 30 32..

Province of New Brunswick 4.80% 2039/09/26 Sinkable 50,000 59 61..




Province of Newfoundland and Labrador 6.15% 2028/04/17 50,000 68 67..

Province of Newfoundland and Labrador 5.60% 2033/10/17 Series '6R' 25,000 30 33..

Province of Newfoundland and Labrador 4.65% 2040/10/17 50,000 59 60..

Province of Newfoundland and Labrador 3.30% 2046/10/17 Series '6X' 50,000 50 48..

Province of Nova Scotia 4.15% 2019/11/25 25,000 27 28..





Province of Ontario 4.30% 2017/03/08 225,000 237 235..







Province of Ontario 4.20% 2020/06/02 450,000 498 505

9




SecurityCoupon

Rate (%)Maturity


AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..






Province of Ontario 7.60% 2027/06/02 Series 'KJ' 230,000 342 344..










Province of Ontario 2.90% 2046/12/02 Series 'DMTN228' 350,000 333 329..

Province of Prince Edward Island 3.60% 2053/01/17 50,000 46 51..

Province of Quebec 4.50% 2017/12/01 Series 'B088' 100,000 109 107..

Province of Quebec 4.50% 2018/12/01 225,000 251 248..










Province of Quebec 6.00% 2029/10/01 Series 'OS' 175,000 172 238..







Province of Saskatchewan 3.20% 2024/06/03 200,000 211 215..


Province of Saskatchewan 4.75% 2040/06/01 Series 'GC' 50,000 61 62..




Scotia Schools Trust 6.22% 2020/07/13 26,146 23 29..

..

..

21,055 21,844 11.6%..x

Municipal Government & Guaranteed..

Aéroports de Montréal 6.55% 2033/10/11 25,000 28 34..

Aéroports de Montréal 5.67% 2037/10/16 Series 'H', Callable 50,000 63 65..

City of Montreal 5.00% 2018/12/01 25,000 27 28..

City of Montreal 3.50% 2023/09/01 50,000 51 54..

City of Montreal 3.50% 2024/09/01 50,000 50 53..

City of Montreal 3.00% 2025/09/01 50,000 50 51..

City of Montreal 6.00% 2043/06/01 25,000 25 35..

City of Toronto 5.05% 2017/07/18 25,000 28 27..

City of Toronto 2.45% 2025/02/06 50,000 50 49..

City of Toronto 5.20% 2040/06/01 50,000 56 63..

Greater Toronto Airports Authority 5.96% 2019/11/20 Series '2009-1' 75,000 90 88..

Greater Toronto Airports Authority 3.04% 2022/09/21 Callable 50,000 50 53..


Greater Toronto Airports Authority 6.98% 2032/10/15 Series '02-3' 25,000 35 35..


Municipal Finance Authority of British Columbia 4.80% 2017/12/01 100,000 110 107..




Municipality of Peel 5.10% 2040/06/29 Sinkable 25,000 27 31..

Municipality of York 7.25% 2017/06/19 30,000 35 33..

Ottawa MacDonald-Cartier International Airport Authority 3.93% 2045/06/09 Series 'E', Sinkable,Restricted, Callable 50,000 50 51

..

Regional Municipality of York 4.05% 2034/05/01 75,000 76 82..

South Coast British Columbia Transportation Authority 4.65% 2041/06/20 25,000 26 29..

University of Toronto 6.78% 2031/07/18 Callable 75,000 78 105..

Winnipeg Airport Authority Inc. 5.21% 2040/09/28 Sinkable 22,843 20 26..

..

..

1,381 1,465 0.7%..x

Mortgage-Backed Securities..

Genesis Trust II 2.30% 2017/02/15 25,000 25 25..

Genesis Trust II 1.70% 2020/04/15 Series '15-1' 25,000 25 25..

Genesis Trust II 2.43% 2026/05/15 Class 'A', Series '2014-1' 50,000 50 51..

..

..

100 101 0.1%..

10




SecurityCoupon

Rate (%)Maturity


AverageCost

($000s)

FairValue

($000s)

% ofNet

Assetsx

Corporate..

407 International Inc. 4.30% 2021/05/26 Callable 100,000 109 112..


407 International Inc. 5.96% 2035/12/03 25,000 28 33..


Alimentation Couche-Tard Inc. 3.32% 2019/11/01 100,000 106 104..

Alimentation Couche-Tard Inc. 3.90% 2022/11/01 Series '3' 50,000 50 53..

Alimentation Couche-Tard Inc. 3.60% 2025/06/02 Series '5', Restricted, Callable 50,000 50 50..

AltaGas Ltd. 4.55% 2019/01/17 Callable 25,000 27 27..




AltaLink Investments L.P. 3.27% 2020/06/05 Series '13-1', Restricted,Callable 75,000 79 78

..

AltaLink L.P. 5.24% 2018/05/29 Series '2008-1', Callable 25,000 28 27..

AltaLink L.P. 3.67% 2023/11/06 25,000 25 27..



American Express Canada Credit Corp. 2.31% 2018/03/29 25,000 25 25..

Bank of Montreal 2.39% 2017/07/12 Callable 50,000 50 51..








Bank of Montreal 6.17% 2023/03/28 Series 'F', Variable Rate,Callable 50,000 57 55

..

Bank of Nova Scotia 2.60% 2017/02/27 125,000 128 127..








Bank of Nova Scotia 2.87% 2021/06/04 Series 'DPNT' 200,000 210 207..

Bank of Nova Scotia 2.90% 2022/08/03 Variable Rate, Callable 175,000 179 178..

Bank of Nova Scotia 3.04% 2024/10/18 Variable Rate, Callable 175,000 177 181..

bcIMC Realty Corp. 2.79% 2018/08/02 Series '11', Restricted 25,000 26 26..

bcIMC Realty Corp. 2.96% 2019/03/07 Series '8', Callable 25,000 25 26..

bcIMC Realty Corp. 2.84% 2025/06/03 Series '13', Restricted,Callable 100,000 100 101

..

Bell Canada 4.88% 2018/04/26 Callable 25,000 27 27..


Bell Canada 3.35% 2019/06/18 Series 'M-25', Callable 150,000 159 157..


Bell Canada 3.35% 2023/03/22 Series 'M-26', Callable 175,000 176 179..


Bell Canada 8.88% 2026/04/17 75,000 99 101..



Blackbird Infrastructure 407 General Partnership 1.71% 2021/10/08 Series 'B', Variable Rate,Callable 25,000 25 25

..

BMW Canada Inc. 2.33% 2018/05/23 Series 'I', Restricted 25,000 24 25..

British Columbia Ferry Services Inc. 6.25% 2034/10/13 50,000 61 67..

Brookfield Asset Management Inc. 3.95% 2019/04/09 Callable 25,000 25 26..



BRP Finance ULC 5.14% 2020/10/13 Series '7', Callable 50,000 50 55..

Caisse centrale Desjardins du Québec 2.80% 2018/11/19 100,000 102 103..

Calloway REIT 3.99% 2023/05/30 50,000 50 52..

Calloway REIT 3.56% 2025/02/06 Series 'N' 50,000 50 49..

Cameco Corp. 5.67% 2019/09/02 Series 'D', Callable 50,000 56 55..

Canadian Credit Card Trust II 1.83% 2020/03/24 Series 'A' 50,000 50 50..

Canadian Imperial Bank of Commerce 2.35% 2017/10/18 125,000 126 127..




Canadian National Railway Co. 2.80% 2025/09/22 Callable 25,000 25 25..

Canadian Natural Resources Ltd. 2.89% 2020/08/14 Series '2', Callable 125,000 127 126..

Canadian Natural Resources Ltd. 3.55% 2024/06/03 Callable 50,000 50 49..

Canadian Pacific Railway Co. 6.45% 2039/11/17 Callable 25,000 25 30..

Canadian Tire Corp. Ltd. 5.61% 2035/09/04 Callable 50,000 43 56..

Canadian Western Bank 2.53% 2018/03/22 25,000 25 25..

Capital Desjardins Inc. 5.19% 2020/05/05 Series 'G', Callable 175,000 200 196..

Capital Power Corp. 5.28% 2020/11/16 25,000 26 26..

Cards II Trust 2.16% 2020/10/15 Series 'A' 50,000 50 50..

Caterpillar Financial Services Ltd. 2.29% 2018/06/01 25,000 25 25..

Choice Properties L.P. 3.60% 2020/04/20 Series '8', Restricted 25,000 26 26..

Choice Properties L.P. 3.60% 2022/09/20 Series '10', Restricted,Callable 25,000 25 26

..

Choice Properties REIT 3.50% 2021/02/08 25,000 25 26..

CIBC Capital Trust 9.98% 2019/06/30 Series 'A', Callable 25,000 31 31..

Cogeco Cable Inc. 5.15% 2020/11/16 Callable 50,000 55 55

11




SecurityCoupon

Rate (%)Maturity


AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Cominar REIT 4.23% 2019/12/04 25,000 26 26..

Crosslinx Transit Solutions G.P. 4.65% 2046/09/30 Sinkable, Restricted 25,000 25 25..

CT REIT 3.53% 2025/06/09 Series 'B', Callable 50,000 50 50..

CU Inc. 6.15% 2017/11/22 100,000 118 109..

CU Inc. 4.72% 2043/09/09 Callable 50,000 55 56..

CU Inc. 4.09% 2044/09/02 Callable 100,000 107 102..

CU Inc. 3.96% 2045/07/27 Callable 25,000 25 25..

Daimler Canada Finance Inc. 1.78% 2019/08/19 100,000 99 99..

Dollarama Inc. 3.10% 2018/11/05 Callable 50,000 51 51..

Dream Office REIT 4.07% 2020/01/21 Series 'C' 50,000 51 51..

Emera Inc. 4.83% 2019/12/02 Series 'G', Callable 25,000 27 27..

Enbridge Gas Distribution Inc. 4.04% 2020/11/23 Callable 50,000 56 55..

Enbridge Gas Distribution Inc. 5.21% 2036/02/25 Callable 50,000 55 57..

Enbridge Inc. 4.77% 2019/09/02 Callable 50,000 56 53..




Enbridge Income Fund (The) 3.95% 2024/11/19 Callable 50,000 50 49..

Enbridge Income Fund Holdings Inc. 4.10% 2019/02/22 Callable 15,000 16 16..

Enbridge Pipelines Inc. 6.62% 2018/11/19 Callable 25,000 30 28..



Epcor Utilities Inc. 5.80% 2018/01/31 Callable 25,000 28 27..

Epcor Utilities Inc. 6.65% 2038/04/15 Callable 25,000 34 35..

Fairfax Financial Holdings Ltd. 6.40% 2021/05/25 Callable 50,000 57 57..

Fairfax Financial Holdings Ltd. 5.84% 2022/10/14 Callable 25,000 25 28..

Federated Co-Operatives Ltd. 3.92% 2025/06/17 Restricted, Callable 50,000 50 50..

Finning International Inc. 6.02% 2018/06/01 Callable 25,000 28 27..

First Capital Realty Inc. 3.90% 2023/10/30 Series 'Q', Callable 75,000 74 78..

First Capital Realty Inc. 4.32% 2025/07/31 Series 'S', Callable 75,000 75 78..

Ford Credit Canada Ltd. 4.88% 2017/02/08 Callable 25,000 27 26..

Ford Credit Canada Ltd. 2.94% 2019/02/19 50,000 50 51..

Ford Credit Canada Ltd. 2.45% 2020/05/07 Restricted 100,000 100 99..

Ford Credit Canada Ltd. 2.92% 2020/09/16 Restricted, Callable 25,000 25 25..

Ford Credit Canada Ltd. 3.28% 2021/07/02 50,000 52 51..

Fortis Inc. 6.51% 2039/07/04 Callable 25,000 25 33..

GE Capital Canada Funding Co. 4.55% 2017/01/17 Callable 50,000 54 52..

GE Capital Canada Funding Co. 4.40% 2018/02/08 25,000 25 27..





General Motors Financial of Canada Ltd. 3.08% 2020/05/22 Restricted, Callable 50,000 51 50..

George Weston Ltd. 6.69% 2033/03/01 25,000 25 30..

Glacier Credit Card Trust 2.39% 2017/10/20 50,000 50 51..

Glacier Credit Card Trust 2.57% 2019/09/20 50,000 50 51..

Great-West Lifeco Inc. 4.65% 2020/08/13 Callable 125,000 138 140..

Great-West Lifeco Inc. 6.67% 2033/03/21 Callable 100,000 140 132..

Great-West Lifeco Inc. 6.00% 2039/11/16 25,000 25 32..

H&R REIT 3.34% 2018/06/20 Series 'G', Callable 25,000 25 26..

Health Montreal Collective L.P. 6.72% 2049/09/30 Sinkable, Callable 25,000 30 33..

Home Trust Co. (The) 2.28% 2018/03/06 25,000 25 25..

Honda Canada Finance Inc. 1.63% 2019/08/12 25,000 25 25..

HSBC Bank Canada 3.56% 2017/10/04 50,000 53 52..

HSBC Bank Canada 2.49% 2019/05/13 25,000 25 25..

HSBC Bank Canada 2.94% 2020/01/14 175,000 179 181..

HSBC Bank Canada 1.82% 2020/07/06 50,000 50 49..

HSBC Bank Canada 2.45% 2021/01/29 50,000 50 50..

HSBC Bank Canada 2.91% 2021/09/29 25,000 25 26..

Husky Energy Inc. 5.00% 2020/03/12 Callable 50,000 56 55..

Husky Energy Inc. 3.55% 2025/03/12 Callable 25,000 25 24..

Hydro One Inc. 5.18% 2017/10/18 Callable 50,000 56 53..




Hydro One Inc. 5.36% 2036/05/20 50,000 57 60..


IGM Financial Inc. 7.35% 2019/04/08 25,000 30 29..

IGM Financial Inc. 6.00% 2040/12/10 Callable 25,000 29 32..

Intact Financial Corp. 4.70% 2021/08/18 25,000 27 28..

Intact Financial Corp. 6.40% 2039/11/23 100,000 126 127..

Inter Pipeline Ltd. 3.84% 2018/07/30 Callable 50,000 52 52..

Inter Pipeline Ltd. 3.17% 2025/03/24 Series '7', Callable 50,000 50 48..

John Deere Canada Funding Inc. 2.30% 2018/01/17 75,000 77 76..

Laurentian Bank of Canada 2.56% 2018/03/26 25,000 25 25..

Laurentian Bank of Canada 2.50% 2020/01/23 50,000 49 50..

Loblaw Cos. Ltd. 3.75% 2019/03/12 Callable 75,000 79 79..

Loblaw Cos. Ltd. 4.86% 2023/09/12 Callable 125,000 138 141..

Magna International Inc. 3.10% 2022/12/15 Callable 25,000 25 25..

Manitoba Telecom Services Inc. 5.63% 2019/12/16 Series '8', Callable 25,000 25 28..

Manufacturers Life Insurance Co. 3.18% 2027/11/22 Variable Rate, Callable 50,000 50 51..

Manufacturers Life Insurance Co. (The) 4.17% 2022/06/01 Variable Rate, Callable 50,000 53 52..

Manufacturers Life Insurance Co. (The) 2.10% 2025/06/01 Variable Rate, Callable 150,000 149 149..

Manufacturers Life Insurance Co. (The) 2.39% 2026/01/05 Variable Rate, Callable 50,000 50 50

12




SecurityCoupon

Rate (%)Maturity


AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Manulife Financial Capital Trust II 7.41% 2019/12/31 Series '1', Variable Rate,Callable 50,000 50 59

..

Manulife Financial Corp. 7.77% 2019/04/08 Callable 26,000 32 31..

Master Credit Card Trust 2.63% 2017/01/21 25,000 25 25..

Master Credit Card Trust II 2.72% 2018/11/21 75,000 77 77..

Metro Inc. 5.97% 2035/10/15 Callable 50,000 58 57..

Metro Inc. 5.03% 2044/12/01 Series 'D', Restricted, Callable 25,000 25 26..

National Bank of Canada 2.02% 2017/04/13 50,000 50 51..




National Bank of Canada 3.26% 2022/04/11 Variable Rate, Callable 75,000 76 76..

NAV Canada 4.40% 2021/02/18 Callable 50,000 55 57..

NBC Asset Trust 7.24% 2018/06/30 Variable Rate, Perpetual 25,000 30 28..

NBC Asset Trust 7.45% 2020/06/30 Series '2', Variable Rate,Perpetual 50,000 62 59

..

North West Redwater Partnership / NWR Financing Co. Ltd. 3.20% 2024/07/22 Series 'A', Callable 25,000 25 26..

North West Redwater Partnership / NWR Financing Co. Ltd. 3.20% 2026/04/24 Series 'E', Restricted, Callable 50,000 50 50..

North West Redwater Partnership / NWR Financing Co. Ltd. 3.70% 2043/02/23 Series 'D', Restricted, Callable 50,000 50 46..

Nova Scotia Power Inc. 4.50% 2043/07/20 Callable 25,000 25 26..

OMERS Realty Corp. 2.50% 2018/06/05 Series '1', Restricted 25,000 25 26..

OMERS Realty Corp. 3.33% 2024/11/12 Series '6', Restricted 50,000 50 53..

Pembina Pipeline Corp. 3.77% 2022/10/24 50,000 50 51..

Pembina Pipeline Corp. 3.54% 2025/02/03 Callable 50,000 50 48..

Pembina Pipeline Corp. 4.75% 2043/04/30 Callable 25,000 24 23..

Penske Truck Leasing Canada Inc. 3.65% 2018/02/01 Callable 25,000 25 26..

Plenary Health Care Partnerships Humber L.P. 4.82% 2044/11/30 Callable 25,000 25 29..

Plenary Properties LTAP L.P. 6.29% 2044/01/31 Callable 49,674 53 64..

RBC Capital Trust 6.82% 2018/06/30 Series '2015', Perpetual,Callable 50,000 59 56

..

Reliance L.P. 5.19% 2019/03/15 50,000 53 53..

RioCan REIT 3.62% 2020/06/01 Series 'U' 25,000 25 26..

RioCan REIT 3.72% 2021/12/13 Series 'R' 25,000 24 26..

RioCan REIT 3.29% 2024/02/12 50,000 50 50..

Rogers Communications Inc. 4.70% 2020/09/29 Callable 50,000 50 55..




Rogers Communications Inc. 6.11% 2040/08/25 50,000 61 58..

Royal Bank of Canada 2.58% 2017/04/13 50,000 50 51..






Royal Bank of Canada 2.35% 2019/12/09 Variable Rate 100,000 103 102..





Royal Bank of Canada 2.99% 2024/12/06 Variable Rate, Callable 75,000 75 77..

Scotiabank Tier I Trust 7.80% 2019/06/30 Variable Rate, Callable 50,000 50 59..

Shaw Communications Inc. 5.70% 2017/03/02 Callable 25,000 25 26..



SNC-Lavalin Group Inc. 6.19% 2019/07/03 Callable 25,000 29 28..

SNC-Lavalin Innisfree McGill Finance Inc. 6.63% 2044/06/30 Callable 49,706 50 64..

Sobeys Inc. 4.70% 2023/08/08 Callable 125,000 131 136..

SSL Finance Inc. / SSL Financement Inc. 4.10% 2045/10/31 Series 'A', Sinkable,Restricted, Callable 25,000 25 25

..

Sun Life Capital Trust 7.09% 2052/06/30 Series 'B', Callable 50,000 62 64..

Sun Life Capital Trust II 5.86% 2019/12/31 Callable 100,000 112 113..

Sun Life Financial Inc. 4.38% 2022/03/02 Series '2012-1', VariableRate, Callable 50,000 53 51

..

Sun Life Financial Inc. 2.60% 2025/09/25 Variable Rate, Callable 25,000 25 25..

Suncor Energy Inc. 3.10% 2021/11/26 Series '5', Callable 75,000 77 77..

Suncor Energy Inc. 5.39% 2037/03/26 Callable 50,000 43 54..

TD Capital Trust III 7.24% 2018/12/31 Variable Rate, Perpetual 50,000 60 57..

TD Capital Trust IV 6.63% 2021/06/30 Variable Rate, Callable 50,000 50 59..

TD Capital Trust IV 10.00% 2039/06/30 Series '2', Variable Rate,Callable 75,000 106 103

..

TELUS Communications Inc. 10.65% 2021/06/19 Series '3' 25,000 35 35..

TELUS Corp. 5.05% 2019/12/04 Series 'CG', Callable 25,000 25 28..

TELUS Corp. 5.05% 2020/07/23 Series 'CH', Callable 75,000 83 84..

TELUS Corp. 3.20% 2021/04/05 Series 'CO', Callable 50,000 50 52..

TELUS Corp. 2.35% 2022/03/28 Callable 50,000 50 49..

TELUS Corp. 3.35% 2023/03/15 Series 'CJ', Callable 75,000 77 77..





Teranet Holdings L.P. 4.81% 2020/12/16 Callable 50,000 56 55..

Teranet Holdings L.P. 5.75% 2040/12/17 Callable 75,000 88 82..

Terasen Gas Inc. 6.00% 2037/10/02 Callable 100,000 118 128..

Thomson Reuters Corp. 4.35% 2020/09/30 Callable 50,000 50 54..

Thomson Reuters Corp. 3.31% 2021/11/12 Callable 100,000 100 103

13




SecurityCoupon

Rate (%)Maturity


AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Toronto Hydro Corp. 4.49% 2019/11/12 Series '3', Callable 50,000 50 55..

Toronto-Dominion Bank (The) 2.43% 2017/08/15 50,000 51 51..

Toronto-Dominion Bank (The) 5.76% 2017/12/18 Variable Rate, Callable 50,000 50 54..







Toyota Credit Canada Inc. 2.75% 2018/07/18 50,000 50 51..

Toyota Credit Canada Inc. 1.80% 2020/02/19 Restricted 75,000 75 75..

TransCanada PipeLines Ltd. 11.80% 2020/11/20 Series 'U' 25,000 38 36..

TransCanada PipeLines Ltd. 3.65% 2021/11/15 Callable 50,000 52 53..




Union Gas Ltd. 5.35% 2018/04/27 Series '6', Callable 50,000 58 54..

Union Gas Ltd. 3.19% 2025/09/17 Callable 25,000 25 25..



Ventas Canada Finance Ltd. 3.30% 2022/02/01 Callable 25,000 25 25..

VW Credit Canada Inc. 2.90% 2017/06/01 25,000 26 25..

VW Credit Canada Inc. 2.45% 2017/11/14 Restricted 25,000 25 25..

Wells Fargo Financial Canada Corp. 2.77% 2017/02/09 50,000 50 51..




West Edmonton Mall Property Inc. 4.31% 2024/02/13 Series 'B1', Callable 75,000 79 80..

Westcoast Energy Inc. 5.60% 2019/01/16 50,000 58 55..

Westcoast Energy Inc. 3.43% 2024/09/12 Series '15', Callable 50,000 50 50..

..

..

17,493 17,674 9.4%..

..

TOTAL CANADIAN BONDS 63,485 64,979 34.5%..

..

INTERNATIONAL BONDSx

United States..

Great-West Lifeco Finance (Delaware) L.P. II 7.13% 2068/06/26 Variable Rate, Callable 25,000 29 28..

Manulife Finance Delaware L.P. 5.06% 2041/12/15 Variable Rate, Callable 25,000 26 26..

..

..

55 54 0.0%..

..

TOTAL INTERNATIONAL BONDS 55 54 0.0%..x

SUPRANATIONAL BONDS..

International Bank for Reconstruction and Development (The) 1.13% 2020/03/11 Series 'GDIF' 50,000 50 50..

..

..

TOTAL SUPRANATIONAL BONDS 50 50 0.0%..

..

TOTAL BONDS 63,590 65,083 34.5%..

..

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 138,488 140,000 74.2%..x

SHORT-TERM INVESTMENTS (note 11)..

Clarity Trust 0.74% 2016/01/08 Series 'A', Discount Note 2,000,000 1,997 2,000..

Daimler Canada Finance Inc. 0.86% 2016/03/08 Discount Note 4,600,000 4,590 4,593..

Fusion Trust 0.78% 2016/03/02 Series 'A', Discount Note 2,000,000 1,996 1,997..



King Street Funding Trust 0.84% 2016/03/22 Discount Note 2,000,000 1,995 1,996..

Merit Trust 0.86% 2016/03/17 Senior Discount Note 4,500,000 4,490 4,492..

Plaza Trust 0.75% 2016/01/13 Discount Note 3,000,000 2,994 2,999..

Prime Trust 0.74% 2016/01/27 Senior Discount Note 5,500,000 5,480 5,497..

Ridge Trust 0.75% 2016/01/27 Series 'A', Discount Note 1,900,000 1,893 1,899..

Ridge Trust 0.77% 2016/02/02 Discount Note 2,000,000 1,995 1,999..

Royal Bank of Canada 0.85% 2016/05/17 Bearer Deposit Note 6,000,000 5,975 5,981..

Royal Bank of Canada 0.45% 2016/01/04 Term Deposit 1,400,000 1,400 1,400..

Zeus Receivables Trust 0.53% 2016/01/21 Senior Discount Note 8,000,000 7,979 7,997..

..

..

TOTAL SHORT-TERM INVESTMENTS 46,673 46,742 24.7%..

..

Less: Transaction costs included in average cost (32).

..

..

TOTAL INVESTMENTS 185,129 186,742 98.9%..

..

Margin 1,141 0.6%..

Derivative assets 921 0.5%..

Other Assets, less Liabilities 71 0.0%..

..

..

TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS 188,875 100.0%

.

...

x

x

Schedule of Derivative Assets and Liabilities - Futures Contracts (note 11)

ContractedValue ($) Name of Future Expiry Date

Number ofContracts Currency

ContractedPrice

FairValue ($)

Unrealized Gain(Loss) ($000s)

x..

3,445,216 S&P/Toronto Stock Exchange 60 Index March 2016 23 CAD 748.96 3,500,140 55..

27,673,654 United States S&P 500 Index March 2016 199 USD 2,010.03 28,024,387 351......

31,118,870 Derivative Assets and Liabilities - Futures 31,524,527 406..

..

As of December 31, 2015, $1,141,065 cash was deposited as margin for the futures contracts.

14



x

Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts

CounterpartyCredit Rating for

Counterparty*Settlement

DateCurrency

Buys Par ValueCurrency

Sells Par Value Forward Rate Current RateUnrealized Gain

(Loss) ($000s)x..

Royal Bank of Canada A-1+ 2016/03/11 USD 19,331,641 CAD 26,231,935 1.357 1.383 512..

Canadian Imperial Bank of Commerce A-1 2016/03/11 CAD 525,926 USD 377,925 0.719 0.723 3......

Derivative Assets and Liabilities - Forwards 515..

..

* The credit rating of each counterparty (as rated by Standard & Poor's, a division of McGraw-Hill Financial Inc.) of the forward foreign currency contracts held by the Fund meets or exceeds the minimum approvedcredit rating.

15



Supplemental Schedule to Schedule of Investment Portfolio

Offsetting Arrangements (note 2d)

(in 000s)

The Fund may enter into various master netting arrangements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allowfor the related amounts to be set off in certain circumstances, such as bankruptcy or the termination of the contracts.

The following table reconciles the net amount of “Over-The-Counter” derivatives presented in the Statements of Financial Position, as at December 31, 2015 and 2014, to:

l The gross amount before offsetting required under IFRS; and

l The net amount after offsetting under the terms of master netting arrangements or other similar arrangements, but which do not meet the criteria for offsetting under IFRS.

x

Financial Assets and Liabilities Amounts Offset Amounts Not Offset Net

Gross Assets(Liabilities)

Amounts Offset UnderIFRS

Net AmountsPresented onStatements of

Financial PositionMaster NettingArrangements

Cash CollateralReceived

x..

As at December 31, 2015..

OTC Derivative Assets $ 515 $ – $ 515 $ – $ – $ 515..

OTC Derivative Liabilities – – – – – –......

Total $ 515 $ – $ 515 $ – $ – $ 515..

..

As at December 31, 2014..

OTC Derivative Assets $ – $ – $ – $ – $ – $ –..

OTC Derivative Liabilities (1) – (1) – – (1)......

Total $ (1) $ – $ (1) $ – $ – $ (1)..

Interests in Underlying Funds (note 4)

As at December 31, 2015 and 2014, the Fund had no significant investments in underlying funds.

16



Financial Instrument RisksInvestment Objective: CIBC Balanced Index Fund (the Fund) seeks to provide bothlong-term growth through capital appreciation and income by investing primarily in acombination of debt instruments, equity securities and options, futures, and forwardcontracts based on Canadian, U.S., and international stock market indices.

Investment Strategies: The Fund uses passive management strategies to create aportfolio with characteristics similar to the blended index described below, allowing theFund to obtain a return that approximates the performance of that index: 35% FTSE TMXCanada Universe Bond Index, 35% S&P/TSX Composite Index, 15% S&P 500 Total ReturnIndex, 8% FTSE TMX 91 day TBill Index, and 7% MSCI EAFE Index.

Significant risks that are relevant to the Fund are discussed here. General information onrisk management and specific discussion on concentration, credit, currency, interest rate,liquidity, and other price/market risk can be found in note 2 of the financial statements.

In the following risk tables, Net Assets is defined as meaning “Net assets attributable toholders of redeemable units".

Concentration Risk as at December 31, 2015 and 2014The Schedule of Investment Portfolio presents the securities held by the Fund as atDecember 31, 2015.The following table presents the investment sectors held by the Fund as at December 31,2014 and groups the securities by asset type, industry sector, geographic region, orcurrency exposure:

As at December 31, 2014

Portfolio Breakdown% of Net

Assetsx

x

Canadian Equitiesx

Consumer Discretionary 2.1x

Consumer Staples 1.2x

Energy 7.1x

Financials 12.7x

Health Care 1.1x

Industrials 2.8x

Information Technology 0.8x

Materials 3.5x

Telecommunication Services 1.6x

Utilities 0.6x

International Equitiesx

Bermuda 0.2x

United States 6.9x

Canadian Bondsx

Government of Canada & Guaranteed 12.7x

Provincial Government & Guaranteed 10.8x

Municipal Government & Guaranteed 0.9x

Mortgage-Backed Securities 0.1x

Corporate 9.3x

Short-Term Investments 23.9x

Margin 0.8x

Derivative Assets (Liabilities) 0.5x

Other Assets, less Liabilities 0.4xxx

Total 100.0xx

Credit RiskCredit ratings represent a consolidation of the ratings provided by various outside serviceproviders and are subject to change, which could be material.

See the Schedule of Investment Portfolio for counterparty from over-the-counterderivative contracts, where applicable.

As at December 31, 2015 and 2014, the Fund invested in debt securities with thefollowing credit ratings:

.

% of Net Assets

Debt Securities by Credit Rating December 31, 2015 December 31, 2014x

x

'AAA' 32.7 33.8x

'AA' 7.4 10.1x

'A' 15.5 10.5x

'BBB' 3.6 3.2x

Below 'BBB' – 0.1xxx

Total 59.2 57.7xx

Currency RiskThe tables that follow indicate the currencies to which the Fund had significant exposureas at December 31, 2015 and 2014, based on the market value of the Fund's financialinstruments (including cash and cash equivalents) and the underlying principal amountsof forward foreign currency contracts, as applicable.


Currency (note 2m)Total Currency

Exposure* ($000s)% of

Net Assetsx

x

USD 40,812 21.6xxx

* Amounts reflect the carrying value of monetary and non-monetary items (including the notionalamount of forward foreign currency contracts, if any).


Currency (note 2m)Total Currency

Exposure* ($000s)% of

Net Assetsx

x

USD 24,286 21.2xxx

* Amounts reflect the carrying value of monetary and non-monetary items (including the notionalamount of forward foreign currency contracts, if any).

The table that follows indicates how net assets as at December 31, 2015 and 2014 wouldhave decreased or increased had the Canadian dollar strengthened or weakened by 1%in relation to all foreign currencies. This analysis assumes that all other variables remainunchanged. In practice, the actual results may differ from this analysis and the differencecould be material.


x

Impact on Net Assets ($000s) 408 243xx

Interest Rate RiskThe Fund’s short-term assets and liabilities were not subject to significant amounts of riskdue to fluctuations in the prevailing level of market interest rates.

The table that follows indicates the Fund’s exposure to fixed income securities byremaining term-to-maturity.

.

December 31, 2015 December 31, 2014Remaining Term-to-Maturity ($000s) ($000s)

xx

1-3 years 14,658 8,785x

3-5 years 12,175 6,834x

> 5 years 38,250 23,129xxx

Total 65,083 38,748xx

The table that follows indicates how net assets as at December 31, 2015 and 2014 wouldhave increased or decreased had the interest rate decreased or increased by 25 basispoints and assuming a parallel shift in the yield curve. This change is estimated using theweighted average duration of the fixed income portfolio. This analysis assumes that allother variables remain unchanged. In practice, actual results may differ from this analysisand the difference could be material..


x

Impact on Net Assets ($000s) 1,259 744xx

Liquidity RiskLiquidity risk is the risk that the Fund will encounter difficulty in meeting obligationsassociated with financial liabilities. The Fund is exposed to daily cash redemptions ofredeemable units. The Fund maintains sufficient cash on hand to fund anticipatedredemptions.

With the exception of derivative contracts, where applicable, all of the Fund’s financialliabilities are short-term liabilities maturing within 90 days after the period end.

For funds that hold derivative contracts with a term-to-maturity that exceeds 90 days fromthe period end, further information related to those contracts can be referenced in thederivative schedules following the Schedule of Investment Portfolio.

17



Other Price/Market RiskThe table that follows indicates how net assets as at December 31, 2015 and 2014 wouldhave increased or decreased had the value of the Fund’s benchmark(s) increased ordecreased by 1%. This change is estimated based on the historical correlation betweenthe return of Class A units of the Fund as compared to the return of the Fund’sbenchmark(s), using 36 monthly data points, as available, based on the monthly netreturns of the Fund. This analysis assumes that all other variables remain unchanged. Thehistorical correlation may not be representative of the future correlation and, accordingly,the impact on net assets could be materially different..

Impact on Net Assets ($000s)

Benchmark December 31, 2015 December 31, 2014x

x

S&P/TSX Composite Index 912 508xxx

FTSE TMX Canada Universe Bond Index 1,255 293xxx

35% FTSE TMX Canada Universe Bond Index35% S&P/TSX Composite Index15% S&P Total Return 500 Index8% FTSE TMX 91 Day T-Bill Index7% MSCI EAFE Index

1,568 1,150

xx

Fair Value Measurement of Financial InstrumentsThe following is a summary of the inputs used as at December 31, 2015 and 2014 invaluing the Fund’s financial assets and financial liabilities, carried at fair value:

As at December 31, 2015Level 1 (i) Level 2 (ii) Level 3 (iii) Total

Classification ($000s) ($000s) ($000s) ($000s)xx

Financial Assetsx

Fixed Income Securities – 65,083 – 65,083x

Short-Term Investments – 46,742 – 46,742x

Equities 74,917 – – 74,917x

Derivative assets 406 27,270 – 27,676xxx

Total Financial Assets 75,323 139,095 – 214,418xx

x

Financial Liabilitiesx

Derivative liabilities – (26,755) – (26,755)xxx

Total Financial Liabilities – (26,755) – (26,755)xx

x

Total Financial Assets and Liabilities 75,323 112,340 – 187,663xx

x

(i) Quoted prices in active markets for identical assetsx

(ii) Significant other observable inputsx

(iii) Significant unobservable inputs

As at December 31, 2014Level 1 (i) Level 2 (ii) Level 3 (iii) Total

Classification ($000s) ($000s) ($000s) ($000s)xx

Financial Assetsx

Fixed Income Securities – 38,748 – 38,748x

Short-Term Investments – 27,459 – 27,459x

Equities 46,463 – – 46,463x

Derivative assets 627 15,117 – 15,744xxx

Total Financial Assets 47,090 81,324 – 128,414xx

x

Financial Liabilitiesx

Derivative liabilities – (15,118) – (15,118)xxx

Total Financial Liabilities – (15,118) – (15,118)xx

x

Total Financial Assets and Liabilities 47,090 66,206 – 113,296xx

x

(i) Quoted prices in active markets for identical assetsx

(ii) Significant other observable inputsx

(iii) Significant unobservable inputs

Transfer of assets between Level 1 and Level 2Financial assets and liabilities transferred from Level 1 to Level 2 are the result ofsecurities no longer being traded in an active market.

For the periods ended December 31, 2015 and 2014, there were no transfers of financialassets and liabilities from Level 1 to Level 2.

Financial assets and liabilities transferred from Level 2 to Level 1 are the result ofsecurities now being traded in an active market.

For the periods ended December 31, 2015 and 2014, there were no transfers of financialassets and liabilities from Level 2 to Level 1.

Reconciliation of financial asset and liability movement – Level 3The Fund did not hold any significant positions of Level 3 investments at the beginning of,during, or at the end of either reporting period.

18

Notes to Financial Statements

x

As at and for the periods as disclosed in the financial statements (see note 1)

1. Organization of the Funds and Financial Reporting Periods

Each of the CIBC Mutual Funds and CIBC Family of Managed Portfolios (individually, a Fund, and collectively, the Funds) is a mutual fund trust organized under the laws of Ontario and governed by a declaration of trust(Declaration of Trust). The address of the Funds’ registered office is 18 York Street, Suite 1300, Toronto, Ontario.

CIBC Securities Inc. is the principal distributor, Canadian Imperial Bank of Commerce (CIBC) is the manager (the Manager), and CIBC Trust Corporation is the trustee (the Trustee) of the Funds.

Each Fund is permitted to have an unlimited number of classes of units and may issue an unlimited number of units of each class. In the future, the offering of any classes of units of a Fund may be terminated oradditional classes of units may be offered. The following table indicates the classes of units offered for sale by each of the Funds, as at the date of these financial statements:x

Funds Class A Class T4 Class T6 Class T8 Premium Class Institutional Class Class Ox..

CIBC Canadian T-Bill Fund ü ü..

CIBC Money Market Fund ü ü ü..

CIBC U.S. Dollar Money Market Fund ü ü ü..

CIBC Short-Term Income Fund ü ü ü..

CIBC Canadian Bond Fund ü ü ü..

CIBC Monthly Income Fund ü ü..

CIBC Global Bond Fund ü ü..

CIBC Global Monthly Income Fund ü ü..

CIBC Balanced Fund ü..

CIBC Dividend Income Fund ü ü..

CIBC Dividend Growth Fund ü ü..

CIBC Canadian Equity Fund ü ü..

CIBC Canadian Equity Value Fund ü ü..

CIBC Canadian Small-Cap Fund ü..

CIBC U.S. Equity Fund ü ü..

CIBC U.S. Small Companies Fund ü ü..

CIBC Global Equity Fund ü..

CIBC International Equity Fund ü ü..

CIBC European Equity Fund ü ü..

CIBC Emerging Markets Fund ü ü..

CIBC Asia Pacific Fund ü ü..

CIBC Latin American Fund ü..

CIBC International Small Companies Fund ü..

CIBC Financial Companies Fund ü..

CIBC Canadian Resources Fund ü ü..

CIBC Energy Fund ü ü..

CIBC Canadian Real Estate Fund ü ü..

CIBC Precious Metals Fund ü ü..

CIBC Global Technology Fund ü..

CIBC Canadian Short-Term Bond Index Fund ü ü ü ü..

CIBC Canadian Bond Index Fund ü ü ü ü..

CIBC Global Bond Index Fund ü ü ü..

CIBC Balanced Index Fund ü ü ü..

CIBC Canadian Index Fund ü ü ü ü..

CIBC U.S. Broad Market Index Fund ü ü ü ü..

CIBC U.S. Index Fund ü ü ü ü..

CIBC International Index Fund ü ü ü ü..

CIBC European Index Fund ü ü ü..

CIBC Emerging Markets Index Fund ü ü ü ü..

CIBC Asia Pacific Index Fund ü ü ü ü..

CIBC Nasdaq Index Fund ü ü ü..

CIBC Managed Income Portfolio ü ü ü..

CIBC Managed Income Plus Portfolio ü ü ü..

CIBC Managed Balanced Portfolio ü ü ü ü..

CIBC Managed Monthly Income Balanced Portfolio ü ü ü..

CIBC Managed Balanced Growth Portfolio ü ü ü ü..

CIBC Managed Growth Portfolio ü ü ü ü..

CIBC Managed Aggressive Growth Portfolio ü ü ü ü..

CIBC U.S. Dollar Managed Income Portfolio ü ü ü..

CIBC U.S. Dollar Managed Balanced Portfolio ü ü ü ü..

CIBC U.S. Dollar Managed Growth Portfolio ü ü ü üx

19

p / 2 Notes to Financial Statements

Each class of units may charge a different management fee. Operating expenses can be either common or class-specific. Class-specific expenses are allocated on a class-by-class basis. As a result, a separate netasset value per unit is calculated for each class of units.

Class A units are available to all investors on a no-load basis with a minimum investment of $500. Investors may have to pay a short-term trading fee if applicable.

Class T4, T6, and T8 units have the same characteristics as Class A units, except that they each intend to pay a fixed distribution amount per unit, which also results in a separate net asset value per unit for each class,and may have different minimum investment requirements.

Premium Class units are available to investors on a no-load basis with a minimum investment of $100,000 for CIBC Canadian T-Bill Fund and CIBC Money Market Fund, US$100,000 for CIBC U.S. Dollar Money MarketFund, $50,000 for CIBC Short-Term Income Fund, CIBC Canadian Bond Fund, CIBC Canadian Short-Term Bond Index Fund, CIBC Canadian Bond Index Fund, CIBC Global Bond Index Fund, CIBC Balanced Index Fund,CIBC Canadian Index Fund, CIBC U.S. Broad Market Index Fund, CIBC U.S. Index Fund, CIBC International Index Fund, CIBC European Index Fund, CIBC Emerging Markets Index Fund, CIBC Asia Pacific Index Fund, andCIBC Nasdaq Index Fund, and US$50,000 for the U.S. dollar purchase option of CIBC U.S. Broad Market Index Fund and CIBC Nasdaq Index Fund. Management fees charged in respect of Premium Class units are lowerthan those charged in respect of Class A units.

Institutional Class units are available to investors with a minimum investment of $50,000. Institutional Class units are available to investors participating in programs that do not require the payment of sales charges byinvestors and do not require the payment of service or trailing commissions to dealers, and others who pay an annual fee to their dealer. For these investors, we “unbundle” the typical distribution costs and charge alower management fee. Potential investors include institutional clients, clients of “fee-for-service” investment advisors, dealer sponsored “wrap accounts”, and others who pay an annual fee to their dealer instead oftransactional sales charges and where the dealer does not receive service fees or trailing commissions from the Manager.

Class O units are only available to certain investors who have been approved by and have entered into a Class O unit account agreement with the Manager or whose dealer or discretionary manager offers separatelymanaged accounts or similar programs and has entered into a Class O unit account agreement with the Manager. These investors are typically financial services companies, including the Manager, that use Class Ounits of a fund to facilitate offering other products to investors. No management fees or operating expenses are charged to a fund in respect of Class O units; instead, a negotiated management fee is charged by theManager directly to, or as directed by, Class O unitholders or dealers and discretionary managers on behalf of unitholders.

The date upon which each Fund was established by Declaration of Trust (Date Established) and the date upon which each class of units of each Fund was first sold to the public (Inception Date) are reported in footnoteOrganization of the Fund on the Statements of Financial Position.

The Schedule of Investment Portfolio of each of the Funds is as at December 31, 2015. The Statements of Financial Position of each of the Funds are as at December 31, 2015 and 2014. The Statements ofComprehensive Income, Statements of Changes in Net Assets Attributable to Holders of Redeemable Units, and the Statements of Cash Flows of each of the Funds are for the years ended December 31, 2015 and2014, except for Funds or classes established during either period, in which case the information presented is from the Date Established or the Inception Date to December 31, 2015 or 2014.

These financial statements were approved for issuance by the Manager on March 2, 2016.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). The Funds adopted IFRS in2014 as required by Canadian securities legislation and the Canadian Accounting Standards Board. Previously, the Funds prepared their financial statements in accordance with Canadian generally acceptedaccounting principles (GAAP) as defined in Part V of the CPA Canada Handbook.

The financial statements have been prepared on a going concern basis using the historical cost convention. However, each Fund is an investment entity and primarily all financial assets and financial liabilities aremeasured at fair value in accordance with IFRS. Accordingly, the Funds’ accounting policies for measuring the fair value of investments and derivatives are consistent with those used in measuring the Net Asset Valuefor transactions with unitholders. In applying IFRS, these financial statements include estimates and assumptions made by management that affect the reported amounts of assets, liabilities, income, and expensesduring the reporting periods. However, existing circumstances and assumptions may change due to market changes or circumstances arising beyond the control of the Funds. Such changes are reflected in theassumptions when they occur.

These financial statements have been presented in Canadian dollars, which is the Funds’ functional currency (unless otherwise noted).

a) Financial Instruments

Classification and recognition of financial instruments

In accordance with IAS 39 Financial Instruments: Recognition and Measurement, financial assets and financial liabilities are classified at initial recognition into the following categories:

Financial assets and liabilities at fair value through profit or loss (“FVTPL”)

This category is sub-divided into:

l Financial instruments classified as Held For Trading: Financial assets and liabilities are classified as Held For Trading if they are acquired for the purpose of selling and/or repurchasing in the near term, andare acquired principally for the purpose of generating a profit from short-term fluctuations in price. Derivatives and securities sold short held by the Funds are classified as Held For Trading and do not meetthe definition of effective hedging instruments as defined by IAS 39.

l Financial instruments designated as FVTPL through inception: All investments held by the Funds, excluding those classified as Held For Trading (discussed above), are designated as fair value through profitor loss upon initial recognition. These financial assets are designated upon initial recognition on the basis that they are part of a group of financial assets that are managed and have their performanceevaluated on a fair value basis, in accordance with risk management and investment strategies of the Funds, as set out in the Funds’ prospectus.

Loans and receivables

The Funds include in this category receivable balances relating to portfolio investments and other short-term receivables such as receivable for units issued.

Other financial liabilities

This category includes all financial liabilities, other than those classified as fair value through profit or loss. The Funds include in this category amounts relating to payables for portfolio securities purchased and otheraccrued liabilities such as payable for units redeemed and distributions payable to holders of redeemable units.

All Funds have contractual obligations to distribute cash to the unitholders. As a result, each Fund's obligation for net assets attributable to holders of redeemable units represents a financial liability and is presentedat the redemption amount.

b) Risk management

The Funds’ overall risk management approach includes formal guidelines that govern the extent of exposure to various types of risk, including diversification within asset classes and limits on the exposure to individualinvestments and counterparties. In addition, derivative financial instruments may be used to manage certain risk exposures. The Manager also has various internal controls to oversee the Funds’ investment activities,including monitoring compliance with the investment objectives and strategies, internal guidelines, and securities regulations. Please refer to each Fund’s Supplemental Schedule to Schedule of Investment Portfoliofor specific risk disclosures.

Fair value of financial instruments by using valuation techniques

Financial instruments are valued at their fair value which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at themeasurement date. Refer to notes 3a to 3f for valuation of each specific type of financial instrument held by the Funds. The fair value of financial assets and liabilities traded in active markets are based on quotedmarket prices at the close of trading on the reporting date. The Funds use the last traded market price for both financial assets and financial liabilities where the last traded price falls within that day’s bid-ask spread.In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the price that is most representative of fair value based on the specific facts and circumstances.

For financial assets and financial liabilities that are not traded in an active market, fair value is determined using valuation techniques.

The Funds classify fair value measurement within a hierarchy which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority tounobservable inputs (Level 3). The three levels of the fair value hierarchy are:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

20

Notes to Financial Statements p / 3

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Inputs are unobservable for the asset or liability.

If inputs are used to measure an asset’s or liability’s fair value, the classification within the hierarchy is based on the lowest level input that is significant to the fair value measurement. Each Fund’s fair value hierarchyclassification of its assets and liabilities is included in the Supplemental Schedule to Schedule of Investment Portfolio.

The carrying values of all non-investment assets and liabilities approximate their fair values due to their short-term nature. Fair values are classified as Level 1 when the related security or derivative is actively tradedand a quoted price is available. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless themeasurement of its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3.

The Manager is responsible for performing the fair value measurements included in the financial statements of a Fund, including the Level 3 measurements. The Manager obtains pricing from third-party pricingvendors and the pricing is reviewed daily. At each financial reporting date, the Manager reviews and approves all Level 3 fair value measurements. The Funds also have a Valuation Committee which meets quarterly toperform detailed reviews of the valuations of investments held by the Funds which includes discussion on Level 3 measurements.

Credit risk

Credit risk is the risk that a counterparty to a financial instrument, such as a fixed income security or a derivative contract, will fail to discharge an obligation or commitment that it has entered into with the Funds. Thevalue of fixed income securities and derivatives as presented on the Schedule of Investment Portfolio includes consideration of the creditworthiness of the issuer and, accordingly, represents the maximum credit riskexposure of the Funds. Certain Funds may invest in short-term fixed income securities issued or guaranteed primarily by the Government of Canada or any Canadian provincial government, obligations of Canadianchartered banks or trust companies, and commercial paper with approved credit ratings. The risk of default on these short-term fixed income securities is considered low and these securities primarily have creditratings of ‘A-1 (Low)’ or higher (as rated by Standard & Poor’s, a division of McGraw Hill Financial, Inc., or equivalent rating from another rating service).

The Funds may engage in securities lending transactions. The credit risk related to securities lending transactions is limited by the fact that the value of cash or securities held as collateral by the Funds in connectionwith these transactions is at least 102% of the fair value of the securities loaned. The collateral and loaned securities are marked to market on each business day. Further information regarding the collateral andsecurities on loan can be found in the footnotes to the Statements of Financial Position and in note 2j.

Currency risk

Currency risk is the risk that the value of an investment will fluctuate due to changes in foreign exchange rates. Mutual funds may invest in securities denominated or traded in currencies other than the Funds’reporting currency.

Interest rate risk

Prices of fixed income securities generally increase when interest rates decline and decrease when interest rates rise. This risk is known as interest rate risk. Prices of longer-term fixed income securities will generallyfluctuate more in response to interest rate changes than would shorter-term securities. Due to the nature of short-term fixed income securities with a remaining term-to-maturity of less than one year, theseinvestments are not generally exposed to a significant risk that their value will fluctuate in response to changes in the prevailing levels of market interest rates.

Liquidity risk

The Funds are exposed to daily cash redemptions of redeemable units. Generally, the Funds retain sufficient cash and cash equivalent positions to maintain adequate liquidity. However, liquidity risk also involves theability to sell an asset for cash easily and at a fair price. Some securities are illiquid due to legal restrictions on their resale, the nature of the investment, or simply a lack of interested buyers for a particular security orsecurity type. Certain securities may become less liquid due to changes in market conditions, such as interest rate changes or market volatility, which could impair the ability of a Fund to sell such securities quickly or ata fair price. Difficulty in selling securities could result in a loss or a lower return for a Fund.

Other price/market risk

Other price/market risk is the risk that the value of investments will fluctuate as a result of changes in market conditions. Several factors can influence market trends, such as economic developments, changes ininterest rates, political changes, and catastrophic events. All investments are exposed to other price/market risk.

c) Investment Transactions, Income Recognition, and Recognition of Realized and Unrealized Gains and Losses

i) Interest for distribution purposes shown on the Statements of Comprehensive Income represents the coupon interest received by the Fund accounted for on an accrual basis. The Funds do not amortizepremiums paid or discounts received on the purchase of fixed income securities except for zero coupon bonds, which are amortized on a straight-line basis.

ii) Dividend income is recorded on the ex-dividend date.

iii) Securities that are exchange-traded are recorded at fair value established by the last traded market price when that price falls within that day’s bid-ask spread. Debt securities are recorded at fair value,established by the last traded price on the over-the-counter market (OTC) when that price falls within that day’s bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread,the Manager determines the price that is most representative of fair value based on the specific facts and circumstances. Unlisted securities are recorded at fair value using fair valuation techniquesestablished by the Manager in establishing a fair value.

iv) Realized gains and losses on investments and unrealized appreciation or depreciation of investments are calculated using the average cost, excluding transaction costs, of the related investments.

v) Investment income is the sum of income paid to the fund that is generated from a fund’s investment fund holdings.

vi) Other income is the sum of income, excluding transaction costs, other than that which is separately classified on the Statements of Comprehensive Income.

d) Offsetting

Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position, if there is a currently enforceable legal right to offset the recognized amounts and there is an intention tosettle on a net basis, or to realize the asset and settle the liability simultaneously.

Where applicable, additional information can be found in the table Offsetting Arrangements as part of the Supplemental Schedule to Schedule of Investment Portfolio. This supplemental schedule discloses the OTCderivatives which are subject to offsetting.

e) Portfolio Securities

The cost of securities of a Fund is determined in the following manner: securities are purchased and sold at a market-traded price to arrive at a value for the position traded. The total purchased value represents thetotal cost of the security to the Fund. When additional units of the same security are purchased, the cost of those additional units is added to the total security cost. When units of the same security are sold, theproportionate cost of the units of the security sold is deducted from the total security cost. If there is a return of capital paid by a security, the amount of this return of capital is deducted from the total security cost.This method of tracking security cost is known as “average cost” and the current total for any one security is referred to as the “adjusted cost base” or “ACB” of the security. Transaction costs incurred in portfoliotransactions are excluded from the average cost of investments and are recognized immediately in Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units and are presented as a separateexpense item in the financial statements.

The difference between the fair value of securities and their average cost, excluding transaction costs, represents the unrealized appreciation (depreciation) in value of the portfolio investments. The applicable periodchange in unrealized appreciation (depreciation) of investments is included on the Statements of Comprehensive Income.

Short-term investments on the Schedule of Investment Portfolio are presented at their amortized cost which approximates the fair value. Accrued interest for bonds is disclosed separately on the Statements ofFinancial Position.

f) Foreign Exchange

The value of investments and other assets and liabilities denominated in foreign currencies is translated into Canadian dollars, which is the Funds’ functional and presentation currency (except for CIBC U.S. DollarMoney Market Fund, CIBC U.S. Dollar Managed Income Portfolio, CIBC U.S. Dollar Managed Balanced Portfolio, and CIBC U.S. Dollar Managed Growth Portfolio, which are valued in U.S. dollars) at the current ratesprevailing on each valuation date.

21


Purchases and sales of investments, income, and expenses are translated into Canadian dollars, which is the Funds’ functional and presentation currency (with the exception of the above-mentioned Funds which arevalued in U.S. dollars) at the foreign exchange rates prevailing on the dates of such transactions. Foreign currency translation gains (losses) on investments and income transactions are included in Net realized gain(loss) on foreign currency and in Income, respectively, on the Statements of Comprehensive Income.

g) Forward Foreign Currency Contracts

The Funds may enter into forward foreign currency contracts for either hedging or non-hedging purposes where such activity is consistent with their investment objectives and as permitted by the Canadian securitiesregulatory authorities.

Changes in the fair value of forward foreign currency contracts are included in derivative assets or derivative liabilities on the Statements of Financial Position, and are recorded as an Increase (decrease) in unrealizedappreciation (depreciation) of investments and derivatives during the applicable period on the Statements of Comprehensive Income.

The gain or loss arising from the difference between the value of the original forward foreign currency contract and the value of such contract at close or delivery is realized and recorded as Net realized gain (loss) onforeign currency for Funds that use the forward foreign currency contracts for hedging, or as Derivative income (loss) from forward foreign currency contracts for Funds that do not use the forward foreign currencycontracts for hedging.

h) Futures Contracts

The margin deposits with brokers relating to futures contracts are included in Margin on the Statements of Financial Position. Any change in the margin requirement is settled daily and included in Receivable forportfolio securities sold or Payable for portfolio securities purchased on the Statements of Financial Position.

Any difference between the settlement value at the close of business on each valuation date and the settlement value at the close of business on the previous valuation date is recorded as Derivative income (loss)from futures contracts on the Statements of Comprehensive Income.

i) Options

Premiums paid for purchased call and put options are included in derivative assets and subsequently measured at fair value on the Statements of Financial Position. When a purchased option expires, the Fund willrealize a loss in the amount of the cost of the option. For a closing transaction, the Fund will realize a gain or loss depending on whether the proceeds are greater or less than the premium paid at the time of purchase.When a purchased call option is exercised, the cost of the security purchased is increased by the premium paid at the time of purchase.

Premiums received from writing options are included in derivative liabilities and subsequently measured at fair value on the Statements of Financial Position as initial reductions in the value of investments. Premiumsreceived from writing options that expire unexercised are recorded as realized gains and reported as Net gain (loss) on sale of investments and derivatives on the Statements of Comprehensive Income. For a closingtransaction, if the cost of closing the transaction exceeds the premium received, the Fund will record a realized loss or, if the premium received at the time the option was written is greater than the amount paid, theFund will record a realized gain and are reported as Net gain (loss) on sale of investments and derivatives. If a written put option is exercised, the cost for the security delivered is reduced by the premiums received atthe time the option was written.

j) Securities Lending

A Fund may lend portfolio securities in order to earn additional revenue, which is disclosed on the Statements of Comprehensive Income. The loaned assets of any one Fund are not permitted to exceed 50% of thefair value of the assets of that Fund (excluding collateral debt for the loaned securities). The minimum allowable collateral is 102% of the fair value of the loaned securities as per the requirements of NationalInstrument 81-102- Investment Funds. Collateral can consist of the following:

i) Cash.

ii) Qualified securities;

iii) Irrevocable letters of credit issued by a Canadian financial institution that is not the counterparty, or an affiliate counterparty, of the fund in the transaction, if evidences of indebtedness of the Canadianfinancial institution that are rated as short-term debt by an approved credit rating organization have an approved credit rating.

iv) Securities that are immediately convertible into securities of the same issuer, class, or type, and the same term, as the securities loaned.

The fair value of the loaned securities is determined on the close of any valuation date and any additional required collateral is delivered to the Fund on the next business day. The securities on loan continue to beincluded on the Schedule of Investment Portfolio and are included in the total value on the Statements of Financial Position in Investments (non-derivative financial assets) at fair value. Where applicable, a Fund’ssecurities lending transactions are reported in footnote Securities Lending on the Statements of Financial Position.

k) Multi-Class Structured Funds

The realized and unrealized capital gains or losses, income, and common expenses (other than class-specific operating expenses and management fees) of the Fund are allocated on each valuation date to theunitholders in proportion to the respective prior day’s net asset value, which includes unitholder trades dated for that day, of each class of units at the date on which the allocation is made. All class-specific operatingexpenses and management fees do not require allocation. All class-specific operating expenses are paid by the Manager and are collected from the Funds on a recoverable basis.

l) Loans and Receivables, Other Assets and Liabilities

Loans and Receivables, other assets and liabilities (other than those classified as FVTPL) are recorded at cost, which approximates their fair value, with the exception of net assets attributable to holders of redeemableunits which are presented at the redemption value.x

x..x

m) Legend of Abbreviations

The following is a list of abbreviations (foreign currency translation and others) that may be used on the Schedule of Investment Portfolio:

x

Currency Abbreviations

x..

AED – United Arab Emirates Dirham JPY – Japanese Yen..

ARS – Argentine Peso KRW – South Korean Won..

AUD – Australian Dollar MAD – Morocco Dirham..

BRL – Brazilian Real MXN – Mexican Peso..

CAD – Canadian Dollar MYR – Malaysian Ringgit..

CHF – Swiss Franc NOK – Norwegian Krone..

CLP – Chilean Peso NZD – New Zealand Dollar..

CNY – Chinese Renminbi PEN – Peruvian Nuevo Sol..

COP – Colombian Peso PHP – Philippine Peso..

CZK – Czech Koruna PKR – Pakistan Rupee..

DKK – Danish Krone PLN – Polish Zloty..

EGP – Egyptian Pound RUB – Russian Ruble..

EUR – Euro SEK – Swedish Krona..

GBP – British Pound SGD – Singapore Dollar..

HKD – Hong Kong Dollar THB – Thai Baht..

HUF – Hungarian Forint TRY – New Turkish Lira

22


..

IDR – Indonesian Rupiah TWD – Taiwan Dollar..

ILS – Israeli Shekel USD – United States Dollar..

INR – Indian Rupee VEF – Venezuelan Bolivar Fuerte..

JOD – Jordanian Dinars ZAR – South African Rand..

Other Abbreviations

..

ADR – American Depositary Receipt..

CVO – Contingent Value Obligations..

ETF – Exchange-Traded Fund..

GDR – Global Depositary Receipt Securities..

NVDR – Non-Voting Depositary Receiptxxxxxxxx

n) Standards issued but not yet effective

Standards issued but not yet effective up to the date of issuance of the Funds’ financial statements are listed below. The Funds intend to adopt applicable standards when they become effective.

IFRS 9, Financial Instruments - Classification and Measurement

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments which reflects all phases of the financial instruments project and replaces IAS 39 Financial Instruments: Recognition and Measurementand all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or afterJanuary 1, 2018, with early application permitted. The Funds are in the process of assessing the impact of IFRS 9.

o) Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit

Increase (decrease) in net assets attributable to holders of redeemable units per unit of each class is calculated by dividing the Increase (decrease) in net assets attributable to holders of redeemable units (excludingdistributions), as reported on the Statements of Comprehensive Income, by the weighted average number of units in issue during the related period.

3. Valuation of Investments

The valuation date (Valuation Date) for a Fund is any day when the Manager’s head office is open for business. The Manager may, at its discretion, establish other Valuation Dates.

The value of the investments or assets of a Fund is determined as follows:

a) Cash and Other Assets

Cash, accounts receivable, dividends receivable, distributions receivable, and interest receivable are valued at fair value or at their recorded cost, plus or minus any foreign exchange between recognition of the assetby the Fund and the current Valuation Date, which approximates fair value.

b) Bonds, Debentures, and Other Debt Obligations

Bonds, debentures, and other debt obligations are fair valued using the last traded price provided by a recognized vendor upon the close of trading on a Valuation Date, whereby the last traded price falls within thatday’s bid-ask spread. If the last traded price does not fall within that day’s bid-ask spread, the Manager will then determine the price that is most representative of fair value based on the specific facts andcircumstances.

c) Listed Securities, Unlisted Securities, and Fair Value Pricing of Foreign Securities

Any security that is listed or traded on a securities exchange is fair valued using the last traded price, whereby the last traded price falls within that day’s bid-ask spread or, if there is no traded price on that exchangeor the last traded price does not fall within that day’s bid-ask spread and in the case of securities traded on an OTC market, at the fair value as determined by the Manager as an appropriate basis for valuation. In suchsituations, a fair value will be determined by the Manager to establish current value. If any securities are inter-listed or traded on more than one exchange or market, the Manager will use the principal exchange ormarket for the fair value of such securities.

Units of each mutual fund in which a Fund invests will be valued at fair value using the most recent net asset value quoted by the Trustee or Manager of the mutual fund on the Valuation Date.

Unlisted securities are fair valued using the last traded price quoted by a recognized dealer, or the Manager may determine a price that more accurately reflects the fair value of these securities if the Manager feelsthe last traded price does not reflect fair value.

Fair value pricing is designed to avoid stale prices and to provide a more accurate fair value, and may assist in the deterrence of harmful short-term or excessive trading in the Fund. When securities listed or traded onmarkets or exchanges that close prior to North or South American markets or exchanges are valued by the Manager at their fair market value, instead of using quoted or published prices, the prices of such securitiesused to calculate the Fund’s net assets or net asset value may differ from quoted or published prices of such securities.

d) Derivatives

Long positions in options, debt-like securities, and listed warrants are fair valued using the last traded price as established on either their principal trading exchange or by a recognized dealer in such securities,whereby the last traded price falls within that day’s bid-ask spread and the credit rating of each counterparty (as rated by Standard & Poor’s, a division of McGraw Hill Financial, Inc.) meets or exceeds the minimumapproved credit rating.

When any option is written by any Fund, the premium received by the Fund will be reflected as a liability that will be valued at an amount equal to the current fair value of the option that would have the effect ofclosing the position. Any difference resulting from revaluation shall be treated as an unrealized gain or loss on investment; the liability shall be deducted in arriving at the net assets attributable to holders ofredeemable units of the Fund. The securities that are the subject of a written option, if any, will be valued in the manner described above for listed securities.

Futures contracts, forward contracts, or swaps will be valued at fair value of the gain or loss, if any, that would be realized on the Valuation Date if the position in the futures contracts, forward contracts, or swapswere to be closed out.

Margin paid or deposited in respect of futures contracts and forward contracts will be reflected as an account receivable and margin consisting of assets other than cash will be noted as held as collateral.

Other derivatives and margin are fair valued in a manner that the Manager determines to represent their fair value.

e) Restricted Securities

Restricted securities purchased by any Fund will be fair valued in a manner that the Manager determines to represent their fair value.

f) Other Investments

All other investments of the Funds will be fair valued in accordance with the laws of the Canadian securities regulatory authorities where applicable.

The value of any security or other property of a Fund for which a market quotation is not readily available or where the market quotations do not properly reflect the fair value of such securities will be determined bythe Manager by valuing the securities at their fair value. In such situations, fair value will be determined using fair valuation techniques that most accurately reflect their fair value as established by the Manager.

4. Interest in Underlying Funds

The Funds may invest in other investment funds (Underlying Funds). Each Underlying Fund invests in a portfolio of assets to generate returns in the form of investment income and capital appreciation for itsunitholders. Each Underlying Fund finances its operations primarily through the issuance of redeemable units, which are puttable at the unitholder’s option and entitle the unitholder to a proportionate share of theUnderlying Fund’s net assets. The funds’ interests in Underlying Funds held in the form of redeemable units, are reported in their Schedule of Investments at fair value, which represents the Funds’ maximum exposureon those investments. The Funds' interests in Underlying Funds as at the prior year period ends are presented in the Financial Instruments Risks - Concentration Risk section in the Supplemental Schedule to Schedule

23


of Investment Portfolio. Distributions earned from Underlying Funds are included in “Investment Income” in the Statements of Comprehensive Income. The total realized and change in unrealized gains (losses) arisingfrom Underlying Funds are also included in the Statement of Comprehensive Income. The Funds do not provide any additional significant financial or other support to Underlying Funds.

Where applicable, the table “Interests in Underlying Funds” is presented as part of the Supplemental Schedule to Schedule of Investment Portfolio provides additional information on the Funds’ investments inUnderlying Funds where the ownership interest exceeds 20% of each Underlying Fund.

5. Redeemable Units Issued and Outstanding

Each Fund is permitted to have an unlimited number of classes of units and may issue an unlimited number of units of each class. The outstanding units represent the net assets attributable to holders of redeemableunits of a Fund. Each unit has no par value and the value of each unit is the net asset value as determined on each valuation date. Settlement of the cost for units issued is completed as per security regulations inplace at the time of issue. Distributions made by a Fund and reinvested by unitholders in additional units also constitute issued redeemable units of a Fund.

Units are redeemed at the net assets attributable to holders of a redeemable unit per unit of a Fund. A right to redeem units of a Fund may be suspended with the approval of the Canadian securities regulatoryauthorities or when normal trading is suspended on a stock, options, or futures exchange within Canada or outside of Canada on which securities or derivatives that make up more than 50% of the value or underlyingexposure of the total assets of a Fund, not including any liabilities of a Fund, are traded and when those securities or derivatives are not traded on any other exchange that represents a reasonably practical alternativefor a Fund. The Fund is not subject to any externally imposed capital requirements.

The capital received by a Fund is utilized within the respective investment mandate of the Fund. This includes the ability to make liquidity available to satisfy unitholder unit redemption requirements upon aunitholder’s request.

Changes in issued and outstanding units for the years ended December 31, 2015 and 2014 can be found on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.x

6. Management Fees and Operating Expenses

Management fees are based on the net asset value of the Funds and are calculated daily. Management fees are paid to the Manager in consideration for providing, or arranging for the provision of, management,distribution, and portfolio advisory services. The maximum annual management fee expressed as a percentage of the average net asset value for each class of units of the Fund is reported in footnote MaximumChargeable Annual Management Fee Rates on the Statements of Comprehensive Income. For Class O units, management fees are negotiated with and paid by, or as directed by, unitholders, or dealers anddiscretionary managers on behalf of unitholders.

In addition to the management fees, the Funds are responsible for all expenses relating to the operation and conduct of the business of the Funds, including interest, operating, and administrative costs (other thanadvertising and promotional expenses, which are the responsibility of the Manager), brokerage fees, commissions, spreads, regulatory fees, Independent Review Committee fees, taxes, audit and legal fees andexpenses, safekeeping and custodial fees, investor servicing costs, and costs of unitholder reports, prospectuses, and other reports. All class-specific operating expenses are paid by the Manager and recovered fromthe Funds. The Funds do not pay a fee to the Trustee.

The Manager may recover from a Fund less than the actual class-specific operating expenses paid by the Manager, resulting in the Manager absorbing class-specific expenses. The Manager may also charge to a Fundless than the maximum management fee in footnote Maximum Chargeable Annual Management Fee Rates on the Statements of Comprehensive Income, resulting in the Manager waiving management fees.

At its sole discretion, the Manager may stop absorbing class-specific operating expenses and/or waiving management fees at any time. Class-specific operating expenses absorbed and/or management fees waivedby the Manager are disclosed on the Statements of Comprehensive Income.

In some cases, the Manager may charge management fees to a Fund that are less than the management fees the Manager is entitled to charge in respect of certain investors in a Fund. The difference in the amount ofthe management fees will be paid out by the Fund to the applicable investors as a distribution of additional units of the Fund (Management Fee Distributions). Management Fee Distributions are negotiable betweenthe Manager and the investor and are dependent primarily on the size of the investor’s investment in the Fund. Management Fee Distributions paid to qualified investors do not adversely impact the Fund or any of theFund’s other investors. The Manager may increase or decrease the amount of Management Fee Distributions to certain investors from time to time.

Certain Funds may invest in units of other Funds (the Underlying Funds). Where a Fund invests in units of an Underlying fund, the Fund does not pay duplicate management fees on the portion of its assets that it investsin units of the Underlying Fund. In addition, the Fund will not pay duplicate sales fees or redemption fees with respect to the purchase or redemption by it of units of the Underlying Fund. Some of the Underlying Fundsheld by the Funds may offer Management Fee Distributions. Such Management Fee Distributions of an Underlying Fund will be paid out as required for taxable distribution payments by a Fund. The manager of anUnderlying Fund may, in some cases, waive a portion of an Underlying Fund’s management fee and/or absorb a portion of an Underlying Fund’s operating expenses.

7. Income Taxes and Withholding Taxes

The Funds qualify as mutual fund trusts under the Income Tax Act (Canada). No income tax is payable by the Funds on net income and/or net realized capital gains that are distributed to unitholders. In addition, incometaxes payable on undistributed net realized capital gains are refundable on a formula basis when units of the Funds are redeemed. Sufficient net income and realized capital gains of the Funds have been, or will be,distributed to the unitholders such that no tax is payable by the Funds and, accordingly, no provision for income taxes has been made in the financial statements. Occasionally, a Fund may pay distributions in excess ofthe net income and net realized capital gains of the Fund. This excess distribution is called a return of capital and is non-taxable to the unitholder. However, a return of capital reduces the average cost of theunitholder’s units for tax purposes, which may result in a capital gain to the unitholder to the extent the average cost becomes less than zero.

CIBC U.S. Dollar Money Market Fund, CIBC U.S. Dollar Managed Income Portfolio, CIBC U.S. Dollar Managed Balanced Portfolio, and CIBC U.S. Dollar Managed Growth Portfolio may realize net foreign currency gainsand losses on the translation of their net realized capital gains to Canadian dollars for tax purposes. These gains will be distributed to investors annually unless these Funds elect to retain them, with the result that thetax would be payable by the Funds.

Non-capital losses that arose in 2006 and thereafter are available to be carried forward for 20 years.

Capital losses for income tax purposes may be carried forward indefinitely and applied against capital gains realized in future years. Where applicable, a Fund’s net capital and non-capital losses are reported infootnote Net Capital and Non-Capital Losses on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.

The Funds have a taxation year-end of December 15 (except for CIBC Canadian T-Bill Fund, CIBC Money Market Fund, CIBC U.S. Dollar Money Market Fund which have a taxation year-end of December 31).

The Funds currently incur withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are shown asa separate expense in the Statements of Comprehensive Income.

8. Brokerage Commissions and Fees

The total commissions paid by the Funds to brokers in connection with portfolio transactions are reported in footnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund whereapplicable. In allocating brokerage business, consideration may be given by the portfolio sub-advisors of the Funds to dealers that furnish research, statistical analysis, and other securities to portfolio sub-advisors thatprocess trades through such dealers (referred to in the industry as “soft dollar” arrangements). These goods and services are paid for with a portion of brokerage commissions and assist the portfolio sub-advisors withtheir investment decision-making services to the Funds. The total soft dollar payments paid by the Funds to brokers are reported in footnote Brokerage Commissions and Fees on the Statements of ComprehensiveIncome of each Fund. In addition, the Manager may enter into commission recapture arrangements with certain dealers with respect to the Fund. Any commission recaptured will be paid to the applicable Fund.

Fixed income and certain other securities are transacted in an OTC market, where participants are dealing as principals. Such securities are generally traded on a net basis and do not normally involve brokeragecommissions, but will typically include a “spread” (being the difference between the bid and the offer prices on the security of the applicable marketplace).

Spreads associated with fixed income securities trading and certain other securities are not ascertainable and, for that reason, are not included in the dollar amounts. In addition, the soft dollar amounts only includethe value of research and other services supplied by a third party to CIBC Asset Management Inc. (CAMI or the Portfolio Advisor) and any portfolio sub-advisors, as the value of the services supplied to the PortfolioAdvisor and any portfolio sub-advisors by the dealer is not ascertainable. When these services benefit more than one Fund, the costs are allocated among the Funds based on transaction activity or some other fairbasis as determined by the Portfolio Advisor and any portfolio sub-advisors.x

9. Related Party Transactions

CIBC and its affiliates have the following roles and responsibilities with respect to the Funds and receive the fees described below in connection with their roles and responsibilities. The Funds may hold securities ofCIBC. CIBC and its affiliates may also be involved in underwriting or lending to issuers of securities that may be held by the Funds, have purchased or sold securities from or to the Funds while acting as principal, havepurchased or sold securities from or to the Funds on behalf of another investment fund managed by CIBC or an affiliate, and also may have been involved as a counterparty to derivative transactions. Management feespayable and other accrued expenses on the Statements of Financial Position are amounts generally payable to a related party of the Fund.

24


Manager, Trustee, Portfolio Advisor, and certain Portfolio Sub-Advisors of the Funds

CIBC is the Manager, CIBC Trust Corporation is the Trustee, and CAMI is the portfolio advisor of each of the Funds. American Century Investment Management, Inc. (ACI) is a portfolio sub-advisor to certain Funds.Although not an affiliate, CIBC currently owns a 41% equity interest in ACI. On December 21, 2015, CIBC announced that it entered into a definitive agreement to sell its minority position in ACI. The sale is expected tobe completed in the first half of 2016 and is subject to regulatory approval.

The Manager also arranges for fund administrative services (other than advertising and promotional, which are the responsibility of the Manager), legal, investor servicing, and costs of unitholder reports,prospectuses, and other reports. The Manager is the registrar and transfer agent for the Funds and provides, or arranges for the provision of, all other administrative services required by the Funds. The dollar amount(including all applicable taxes) of all fund administrative expenses (net of absorptions) that the Manager recovers from a Fund is reported in footnote Administrative and Other Fund Operating Expenses on theStatements of Comprehensive Income.

Brokerage Arrangements and Soft Dollars

The Portfolio Advisor generally delegates trading and execution authority to the portfolio sub-advisors.

The Portfolio Advisor and portfolio sub-advisors make decisions, including the selection of markets and dealers and the negotiation of commissions, with respect to the purchase and sale of portfolio securities, certainderivative products (including futures), and the execution of portfolio transactions. Brokerage business may be allocated by the Portfolio Advisor or portfolio sub-advisors, including ACI, to CIBC World Markets Inc. andCIBC World Markets Corp., each a subsidiary of CIBC. The total commissions paid to related brokers in connection with portfolio transactions are reported in footnote Brokerage Commissions and Fees on theStatements of Comprehensive Income of each Fund.

CIBC World Markets Inc. and CIBC World Markets Corp. may also earn spreads on the sale of fixed income and other securities, and certain derivative products (including forwards) to the Funds. Dealers, includingCIBC World Markets Inc. and CIBC World Markets Corp., may furnish goods and services, other than order execution, to the Portfolio Advisor and portfolio sub-advisors, including ACI, that process trades through them(referred to in the industry as “soft dollar” arrangements). These goods and services are paid for with a portion of brokerage commissions and assist the Portfolio Advisor and portfolio sub-advisors with theirinvestment decision-making services to the Fund or relate directly to executing portfolio transactions on behalf of the Fund. As per terms of the portfolio sub-advisory agreements, such soft dollar arrangements are incompliance with applicable laws. Custodial fees directly related to portfolio transactions incurred by a Fund, otherwise payable by the Fund, shall be paid by CAMI, and/or dealer(s) directed by CAMI, up to the amountof the credits generated under soft dollar arrangements from trading on behalf of the Fund, or a portion of the Fund, during that month. The total soft dollar payments paid by the Fund to related brokers are reported infootnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund. In addition, the Manager may enter into commission recapture arrangements with certain dealers with respect tothe Funds. Any commission recaptured will be paid to the relevant Fund.

Spreads associated with fixed income, other securities, and certain derivative products (including forwards) are not ascertainable and, for that reason, are not included in the dollar values. In addition, the soft dollaramounts only include the value of research and other services supplied by a third party to the Portfolio Advisor and portfolio sub-advisors, as the value of the services supplied to the Portfolio Advisor and portfoliosub-advisors by the dealer is not ascertainable. When these services benefit more than one Fund, the costs are allocated among the Funds based on transaction activity or some other fair basis as determined by thePortfolio Advisor and portfolio sub-advisors.

Custodian

The custodian holds all cash and securities for the Funds and ensures that those assets are kept separate from any other cash or securities that the custodian might be holding. The custodian also provides otherservices to the Funds including record keeping and processing of foreign exchange transactions. CIBC Mellon Trust Company is the custodian of the Funds (the Custodian). The Custodian may hire sub-custodians forthe Funds. The fees and spreads for services of the Custodian directly related to the execution of portfolio transactions by a Fund, or a portion of a Fund, are paid by CAMI and/or dealer(s) directed by CAMI up to theamount of the credits generated under soft dollar arrangements from trading on behalf of the Funds during that month. All other fees for the services of the Custodian are paid by the Manager, and charged to theFunds on a recoverable basis. CIBC owns a 50% interest in CIBC Mellon Trust Company.

Service Provider

CIBC Mellon Global Securities Services Company (CIBC GSS) provides certain services to the Funds, including securities lending, fund accounting and reporting, and portfolio valuation. Such servicing fees are paid bythe Manager and charged to the Funds on a recoverable basis. CIBC indirectly owns a 50% interest in CIBC GSS.

The dollar amount paid by the Funds (including all applicable taxes) to CIBC Mellon Trust Company for custodial fees (net of absorptions) and to CIBC GSS for securities lending, fund accounting and reporting, andportfolio valuation (net of absorptions) for the years ended December 31, 2015 and 2014 is reported in footnote Service Provider on the Statements of Comprehensive Income.

10. Hedging

Certain foreign currency denominated positions have been hedged, or partially hedged, by forward foreign currency contracts as part of the investment strategies of certain Funds. These hedges are indicated by ahedging reference number on the Schedule of Investment Portfolio and a corresponding hedging reference number on the Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts for thoseFunds.

11. Collateral on Specified Derivatives

Short-term investments may be used as collateral for futures contracts outstanding with brokers.x

25

Independent Auditors’ Report

x

To the Unitholders ofxxxxxxxxx

xx

x..

CIBC Canadian T-Bill Fund CIBC Canadian Real Estate Fund..

CIBC Money Market Fund CIBC Precious Metals Fund..

CIBC U.S. Dollar Money Market Fund CIBC Global Technology Fund..

CIBC Short-Term Income Fund CIBC Canadian Short-Term Bond Index Fund..

CIBC Canadian Bond Fund CIBC Canadian Bond Index Fund..

CIBC Monthly Income Fund CIBC Global Bond Index Fund..

CIBC Global Bond Fund CIBC Balanced Index Fund..

CIBC Global Monthly Income Fund CIBC Canadian Index Fund..

CIBC Balanced Fund CIBC U.S. Broad Market Index Fund..

CIBC Dividend Income Fund CIBC U.S. Index Fund..

CIBC Dividend Growth Fund CIBC International Index Fund..

CIBC Canadian Equity Fund CIBC European Index Fund..

CIBC Canadian Equity Value Fund CIBC Emerging Markets Index Fund..

CIBC Canadian Small-Cap Fund CIBC Asia Pacific Index Fund..

CIBC U.S. Equity Fund CIBC Nasdaq Index Fund..

CIBC U.S. Small Companies Fund CIBC Managed Income Portfolio..

CIBC Global Equity Fund CIBC Managed Income Plus Portfolio..

CIBC International Equity Fund CIBC Managed Balanced Portfolio..

CIBC European Equity Fund CIBC Managed Monthly Income Balanced Portfolio..

CIBC Emerging Markets Fund CIBC Managed Balanced Growth Portfolio..

CIBC Asia Pacific Fund CIBC Managed Growth Portfolio..

CIBC Latin American Fund CIBC Managed Aggressive Growth Portfolio..

CIBC International Small Companies Fund CIBC U.S. Dollar Managed Income Portfolio..

CIBC Financial Companies Fund CIBC U.S. Dollar Managed Balanced Portfolio..

CIBC Canadian Resources Fund CIBC U.S. Dollar Managed Growth Portfolio..

CIBC Energy Fund....

(collectively, the “Funds”)xx

We have audited the accompanying financial statements of the Funds, which comprise the statements of financial position as at December 31, 2015 and 2014, and the statements of comprehensive income, changes innet assets attributable to holders of redeemable units and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.

Management's responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Funds' preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internalcontrol. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as at December 31, 2015 and 2014, and their financial performance and their cash flows for theyears then ended in accordance with International Financial Reporting Standards.xxxxxxxx

Toronto, CanadaMarch 11, 2016

26

CIBC Mutual FundsCIBC Family of Managed Portfolios

CIBC

18 York Street, Suite 1300Toronto, Ontario

M5J 2T8

CIBC Securities Inc.1-800-465-3863

Websitewww.cibc.com/mutualfunds

CIBC Securities Inc. is a wholly-owned subsidiary of CIBC and is the principal distributor of the CIBC Mutual Funds and the CIBC Family of Managed Portfolios. CIBC Family ofManaged Portfolios are mutual funds that primarily invest in other CIBC Mutual Funds. To obtain a copy of the simplified prospectus, call CIBC Securities Inc. at 1-800-465-3863 or askyour advisor.

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